Credit card rewards are a wonderful way to get excited about using your credit card. Many credit card products available today are credit cards that reward the user for charging on them.
- There are a few kinds of credit card rewards, including cash back, points that can only be used toward statement credits, and the best type, transferable points.
- You can transfer those points to your card issuer’s airline and hotel partners — sometimes, it’s possible to book the same flight for a lot fewer points if you go through an airline’s frequent flyer program.
- Some of the most popular credit cards that earn transferable points are the Sapphire Preferred and Sapphire Reserve from Chase, and the Platinum Card from American Express.
Among people well versed in travel and credit card rewards, there’s a bit of common knowledge: “Not all rewards points are created equal.”
That’s because even though a ton of different cards offer “points” or “miles” for every dollar you spend, those points can be very different things. Each bank and frequent flyer program has its own rewards currency that can be used in different ways. That makes it complicated when it’s time to choose a credit card. Two different cards could both offer double points on purchases, but those points could be good for very different things.
In some cases, like with the Capital One Venture or the Barclaycard Arrival Plus, points can only be used toward a statement credit applied toward travel purchases. They’re great cards otherwise, but in terms of rewards, you can do better.