You’ve definitely heard about them and, at a first look, they seem pretty much the same thing. However, the truth is that, despite the resemblance, cash back credit cards and travel rewards cards are actually very different!
To be more specific, the actual question is which one of these is actually better for your needs? Let’s find out together…
Why should you choose travel rewards cards
If you search for some travel solutions, you will see that a lot of them are based on a rewards system, allowing users to collect bonuses for a purchase, then store them and eventually using them for another one. Sounds pretty good, right?
However, through this system, you don’t collect just money. Some loyalty programs, for example, offer you rewards like 50% discounts on bookings or getting better level rooms for lower prices.
Through a travel rewards card you automatically send a statement to the issuers, that you trust them, and will have all the benefits of being a regular customer. The only minus is that you can use the bonuses you get access to just for partnering companies.
Why should you choose cash back cards
Cash back cards, on the other side, don’t offer such amazing loyalty benefits, but they’re a bit more practical.
When you make purchases using this type of card, you get a very small amount of money back in your account. Again, very small amount, but depending on how often you shop, it can become a pretty nice one in the end.
However, the nice part is that you can use the final amount you get back to pay bills and even for groceries, in any mall of your choice.
In the end, we can’t tell exactly which one of these are actually better, since it depends on the user. Become loyal to a few firms and enjoy all their benefits as a client or choosing the cash back options, with the included rewards? It’s all up to you…
