Are travel rewards better than cash rewards credit cards?


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Are travel rewards better than cash rewards credit cards?

Are travel rewards better than cash rewards credit cards?

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
If you are thinking of getting a new credit card, you should first consider the ideal rewards you want. In this article, we will compare the two main types of reward schemes to make a better decision. You may choose between a card that will offer cash rewards for making purchases or a card that offers travel rewards like airline miles with your card. Frequent flyer mile programs are now being offered as rewards with credit card purchases. This is just the beginning of a long race between different reward programs. It`s all about making the customer spend more, while making him or her believe that they are being rewarded lavishly for doing so. These reward programs are definitely beneficial to the customer. However, the problem lies with redeeming the rewards. The problem with air miles is that you would have to accumulate a lot of miles to redeem them. There were also certain blackout dates, when you cannot use the air miles. You also cannot use the air miles beyond a certain date when it expires. Beyond these, neither can you access all air- lines with your air miles. Credit cards with cash rewards are a good way of ensuring that you are not laden with stuff you do not need, or air tickets that you will not use. Obviously, the value of the cash reward will be lower than the value of the other sort of rewards that you can exchange for goods or services. However, you can use it for whatever you want. The customer is lured into getting a credit card which promises rewards, but you end up losing all the points when you don`t use it. It is also possible you can get stuff you do not really need from a catalog that is very limited in scope. In today`s market, credit card companies have started giving back money as a way of luring customers. This is the best way of attracting new customers. You can get a card giving one percent to even five percent as cash back on any purchase that you make. Sometimes there are extreme reward credit cards that give out twenty percent as cash back on the purchase. It is very convenient to get cash back. This is automatically credited to the attached savings account. You can also get gift cards, which can be used to purchase at selected outlets. The only issue with such cards is that you will have a specified time in order to get the cash. This might be around 120 days or so. With others, you will also have withdrawal limits. In this manner, you will lose whatever extra points you have accumulated over fifty dollars.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: February 12, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!