When it comes to rewards credit cards, there are two main types: cash back and travel rewards. Each type has different pros and cons, but they both offer excellent benefits if you know how to use them right. It’s important to choose the right card for your financial situation so that you can get the most out of your card without paying more than necessary in fees. In this post we’ll go over the basics of cash back vs travel rewards so you can choose which one will work best for your lifestyle and goals!

Should I be getting cash back or travel rewards?

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Cash back and travel rewards cards are both popular options for credit card users, but which one should you choose? The answer depends on how you plan to use your credit card.

Cash back cards are good for everyday spending and small purchases. With cash back cards, you earn a percentage of your purchase in cash each month after using the card for eligible purchases. This makes them ideal for all-around everyday spending like groceries, gas, restaurants and other items that may not require much thought or money. You can also use these rewards on things like Uber rides or Amazon gift cards (in some cases). Travel rewards cards are great for big purchases such as flights or hotel stays because they reward users with points that can be redeemed at certain retailers. These points can be used toward anything from plane tickets to cruises—but they have to be used within a year of earning them in order to avoid expiration dates!

How do cash back and travel rewards compare?

Cash back and travel rewards are two of the most popular credit card offers on the market. They offer different benefits and have pros and cons that need to be considered before you apply for a new credit card.

Travel rewards cards give you points, miles or cash back when you swipe your credit card at certain places. These rewards are tied to specific airline or hotel brands and can only be redeemed with those brands. You have to pay the annual fee in exchange for these benefits, but they can save money over time if you use them regularly enough that it makes up for what you spend on fees every year.

How to decide which to choose

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There are a number of things to consider when choosing between cash back cards and travel rewards cards.

  • Compare the benefits of each card. Some cash back cards offer rewards on purchases, such as gas or groceries, which may not be offered with travel rewards credit cards. As you compare cards, it’s also important to compare the level of protection they offer in case your card is lost or stolen as well as other perks like purchase protection and extended warranties.
  • Look at the features of each card. Some travel rewards credit cards have an annual fee while others don’t; some come with additional perks such as hotel discounts or concierge services while others don’t—these differences could help tip your decision one way or another depending on what kind of traveler you are!
  • Compare interest rates on both types of credit cards so that you’re aware how much each will cost over time (and remember that many credit unions offer 0% promotional APRs).
  • Look at sign up bonuses: If you’re planning to spend money right away just so that you can earn more points towards future travel expenses then definitely keep this in mind when comparing interest rates for any type of new account opening (cash back vs travel rewards).

If you’re looking to find a credit card that will pay you back, the best option is usually cash back. But travel rewards can be a great choice if they’re not too complicated or confusing for you. If you don’t have any travel plans right now, then go with cash back instead!