{"id":8628,"date":"2020-03-27T12:23:19","date_gmt":"2020-03-27T17:53:19","guid":{"rendered":"https:\/\/www.journohq.com\/blog\/?p=8628"},"modified":"2023-04-09T07:26:32","modified_gmt":"2023-04-09T12:56:32","slug":"cash-back-vs-travel-rewards-credit-cards-everything-you-need-to-know-2020","status":"publish","type":"post","link":"https:\/\/www.journohq.com\/blog\/cash-back-vs-travel-rewards-credit-cards-everything-you-need-to-know-2020\/","title":{"rendered":"Cash-back vs. Travel Rewards Credit Cards: Everything You Need To Know 2023"},"content":{"rendered":"\t\t
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\"Travel<\/figure>\n\n

Travelers face many \u201cthis or that?\u201d dilemmas when planning and booking travel.\u00a0<\/h3>\n\n

There are so many different types of Travel Rewards out there! Hotel or Airbnb? Direct flight or connecting? Train<\/a> or bus? And we can\u2019t forget…<\/p>\n\n

Cash-back<\/a> or travel rewards<\/a> credit card?\u00a0<\/strong><\/p>\n\n

Both seem to be reaping with cool benefits, but how do we know which is best?<\/p>\n\n

We\u2019ll answer that and more in our guide below that features everything you need to know about cash-back and travel rewards credit cards in 2020.

<\/p>\n\n

What\u2019s the difference between cash-back and travel rewards credit cards?<\/h3>\n\n
\"difference<\/figure>\n\n

The differences are pretty clean-cut:<\/p>\n\n

Cash-back cards offer fixed amounts of cash-back to you when you use them.<\/p>\n\n

Whereas travel rewards credit cards offer rewards in the form of points. Once you spend a certain amount of points, you can redeem these points on flights, hotels<\/a>, and other aspects of travel.

<\/p>\n\n

How do I decide which card is right for me?<\/h3>\n\n
\"Travel<\/figure>\n\n

Well, the important thing to do is to really take a moment and think about what you value more from your own spending. Would you rather spend money and be rewarded with travel points? Or would you rather receive cash back right into your hands?<\/p>\n\n

If you’re looking for more immediate savings in terms of actual cash, you\u2019ll probably want a cashback credit card<\/a>. If you sway towards travel, you\u2019ll want a travel rewards credit card<\/a> to build points for all those trips you want to go on.<\/p>\n\n

In addition – if you prefer the idea of collecting points – there are general point rewards cards<\/a> that could work for you as well…<\/p>\n\n

These allow you to redeem points for much more than travel, although if you did want to redeem for travel you might not get the value. What is important to you? Is it important that you reap large benefits like vacations<\/a> and flights, or is it important that your points can be redeemed for a wider variety of things?<\/p>\n\n

For the remainder of this article, though, we’ll assume you care only about finding out if travel rewards credit cards or cash-back credit cards are best for you right now.

<\/p>\n\n

Take a look at what you can earn.\u00a0<\/strong><\/h3>\n\n
\"\"<\/figure>\n\n

Taking a look at what you can earn with both options of credit cards is important because this may also help you decide.<\/p>\n\n

For instance, some cash back cards give you extra bonuses, like the Citi\u00ae Double Cash card pays 1% cash back when you shop and another 1% when you pay your bill – that\u2019s a whole 2% more than you had before!

>> Click here to check out the best cash back cards now<\/a>

<\/p>\n\n

Remember interest rates.<\/strong><\/h3>\n\n
\"\"<\/figure>\n\n

Be careful with which card you choose, because you can rack up interest rate debt. Interest rates are how banks and cards make money, so if you\u2019re not making your full payment each month, you will be paying money towards interest.<\/p>\n\n

Be sure to compare interest rates when comparing cards. You want to determine if the rewards and interest rates are really worth it for you and your lifestyle.<\/p>\n\n

We ALWAYS recommend paying your cards in full every month so you don’t accrue interest charges, but in case you forget or can’t fully pay one month, that interest fee can offset some of the points you earned.

<\/p>\n\n

What are the key factors you should consider when comparing cards?\u00a0<\/strong><\/h3>\n\n
\"travel<\/figure>\n\n

The key factors you should consider when comparing cash-back cards and travel rewards cards are:<\/p>\n\n