Rewards Credit Card vs Cash Back Credit Card

Whether you are new to being the owner of a credit card or you have several cards in your wallet, one of the basic questions plaguing many people is whether they should get a cash back credit card or rewards credit card. Each of these cards has their pros and cons. The cash back credit card offers a direct return while the rewards credit card gives you a lot of perks such as a free hotel stay or free airline tickets.

The Differences

The sign up bonus for the cash back card is usually around $200 while the rewards card is equivalent to $300 or more. Both cards are evenly matched when it comes to return on normal spending. The sign up bonus for the reward cards are more attractive to new customers as lenders offer more cash and points incentives The cash back card has less value than the rewards card. The reward cards have low maintenance since the other has varying rates of redemption and transfer rules. The annual fees are evenly matched.

Regular Spending Return

When compared, both cards have their own value added features and so there would be no definitive winner in this aspect, especially as it relates to regular spending return. Both cards can earn you money, depending on where you use the card for spending.

The Valuable Features

Most cash back cards or reward cards have an extended warranty. You can also feel safe using the card for purchase, especially for things such as concierge service and insurance. You get a lot more perks with the reward cards when you book flights, check into hotels or purchase travel insurance.


No matter which one of these cards you choose, you will receive different or similar benefits. Most financial institutions have their own rules for both cards. Read the fine print and ask questions, if unsure.