Types of Rewards Credit Card

The two popular types of rewards credit cards are air miles credit cards and cashback credit cards. Air miles credit cards, also known as frequent flyer miles, are part of a loyalty program by airlines and credit card companies. Miles are accumulated as you spend on your credit card, and you can claim the cost of your flights in the miles you have clocked.

Cashback credit cards offer cash rewards when you make purchases. The more you spend, the more cash rewards you accumulate. The interest rate for the rewards differs from each card and can differ depending on your category of expenses, i.e. shopping or bills. Cashback credit cards tend to be suitable for people with fixed expenses each month.

While air miles and cashback credit cards are the common credit card rewards, there are also cards with specialised incentives for shopping, gas or hotel stays when you charge to it.