Cash Back vs. Rewards Credit Cards

Ah, the sweet rewards of using credit!

Not only do you get immediate gratification with the buy now-pay later plastic, but now, many credit cards offer rewards and incentives for using their card to make purchases. You can get cash back, or gift cards, or 'reward points' that you can spend on merchandise or services from various merchants. There are also cards that allow you to designate your 'cash back' points to a charity ? sometimes called affinity cards ? and those that put your cash back into a special savings account for college.

Great deal, right? You spend your money and get something in return. The catch is, of course, that you're paying interest and card fees to get your cash back rewards. But if you're going to be using the credit card anyway, you might as well get something back out of it, right?

Most cash-back cards give you 1-2% cash back on most of your purchases. You'll get a check at specified periods for the amount of your 'rewards cash'. You can cash the check and spend the money on anything you want.

Reward cards give you 1-5 reward points for every dollar that you spend at different merchants and types of merchants. Most pay you 5 reward points for purchases made at their 'Merchant Thank You' network, and for purchases made at gas stations, drug stores and supermarkets. You'll get 1 reward point for every dollar that you spend at other merchants. You can then redeem your reward points for particular items from the merchants that belong to the credit card's merchant network.

Which is the better choice?

Each kind of credit card reward has its own pros and cons, and the better choice depends on what's most important to you.

Cash-back Rewards ? Pros

Cash can be used anywhere, for any kind of purchase. Gives 1% - 2% cash back on all purchases.

Cash-back Rewards ? Cons

Rewards points cards may give rewards of higher value, particularly for purchases at merchant networks stores, gas stations and supermarkets. Cash-back can only be used when a check is issued.

Rewards Points ? Pros

Rewards points are often higher value than cash-back. If you use the credit card for purchases made within the merchant member network, you can get as much as 5% value back when you spend your reward points.

Reward points are available to use on a rolling basis. Some card companies may require you to accumulate a certain number of rewards points before redeeming them, but reward point rewards are often more easily available than cash-back rewards. Reward points can be used for cash rewards in some circumstances.

Reward Points ? Cons

Reward points can only be redeemed from particular merchants and/or on particular merchandise.

Whichever your choice, it makes good sense to get something back when you choose to use credit. If you're a frequent credit card user, the rewards can certainly add up. Among the merchants that belong to various Merchant Member networks are such well-known companies as airlines, Saks Fifth Avenue, Evelyn & Crabtree and Smarter Edge.

Joseph Kenny is the webmaster of the credit card comparison sites Credit Cards Info and also Credit Cards 121

---

Google News Updated : Sun, 12 Oct 2008 23:51:23 GMT First Second-Generation Astronaut, Richard Garriott, Launched Into ... - AHN Canada.com First Second-Generation Astronaut, Richard Garriott, Launched Into ... AHN - 2 hours ago Vienna, VA (AHN)-Space Adventures, Ltd, a company that provides space missions to the global community, announced that client Richard Garriott and his crew successfully launched from the Baikonur Cosmodrome in Kazakhstan to the International Space ... Video: Raw Video: US space tourist begins journey AssociatedPress US game designer blasts into space with DNA cargo The Associated Press VIP Breakdown - Independent - Slashdot - Houston Chronicle all 1,036 news articles Publ.Date : Sun, 12 Oct 2008 21:28:36 GMT Tigers still seeking QB to turn season around - SportingNews.com Seattle Post Intelligencer Tigers still seeking QB to turn season around SportingNews.com - 38 minutes ago AP Sports Wri AUBURN, Ala. (AP) -- The Auburn Tigers didn't figure they'd be in this position: Unranked, desperately trying to salvage a once-promising season and still seeking a quarterback solution seven games into the season. Tuberville And Tigers Trying To Regroup Dawg Post A Pig Sooie Shocker in Auburn WTVM BamaMag.com - Sports Network - The Associated Press - International Herald Tribune all 647 news articles Publ.Date : Sun, 12 Oct 2008 23:13:08 GMT Mighty Chihuahuas Eclipse DiCaprio and Crowe in Test of Star Power - New York Times Mighty Chihuahuas Eclipse DiCaprio and Crowe in Test of Star Power New York Times - 2 hours ago By BROOKS BARNES LOS ANGELES - This is how far movie stars have fallen in their ability to pull audiences into theaters, at least when the story revolves around Iraq and the messiness of the Middle East: A picture about talking dogs, “Beverly Hills ... Dogs rule: 'Beverly Hills Chihuahua' No. 1 again Los Angeles Times 'Chihuahua' fetches $17.5M, remains top movie dog The Associated Press Reuters - Hollywood.com - Cincinnati.com - Bloomberg all 374 news articles Publ.Date : Sun, 12 Oct 2008 21:18:44 GMT Palin talks economic worries in Appalachian Ohio - The Associated Press Times Online Palin talks economic worries in Appalachian Ohio The Associated Press - 39 minutes ago ST. CLAIRSVILLE, Ohio (AP) - Sarah Palin told voters in southeastern Ohio on Sunday that she and running mate John McCain would bring jobs back to this economically depressed piece of Appalachia. John McCain and Sarah Palin try new tactics Los Angeles Times US-POLITICS Summary Washington Post Milwaukee Labor Press - Tampa Tribune - guardian.co.uk - FOXNews all 2,032 news articles Publ.Date : Sun, 12 Oct 2008 23:11:58 GMT Breast Cancer Awareness Month: Cancer survivor shares her story - Naples Daily News ChattahBox Breast Cancer Awareness Month: Cancer survivor shares her story Naples Daily News - 1 hour ago By LIANE SMITH (Contact) She felt pain in her breasts. One of her aunt’s died in February from breast cancer. Another aunt, in her 60s now, has battled it on and off for more than a dozen years. Pink And Purple Join To Help Women eFluxMedia Breast Cancer Awareness Month Should Be Prevention Month! Food Consumer Princeton Times Leader - San Marcos Daily Record - Hudson Reporter - WISC all 136 news articles Publ.Date : Sun, 12 Oct 2008 22:31:44 GMT Falcons' Ryan is not your typical rookie QB - FOXSports.com Boston Globe Falcons' Ryan is not your typical rookie QB FOXSports.com - 36 minutes ago by Alex Marvez Alex Marvez is a Senior NFL Writer for FOXSports.com. He's covered the NFL for 14 seasons as a beat writer and is the president of the Pro Football Writers of America. Falcons missed chances in red zone Atlanta Journal Constitution Bears rally late, fall to Falcons on last-second FG Chicago Sun-Times Sports Network - SI.com - The Associated Press - Rotowire all 607 news articles Publ.Date : Sun, 12 Oct 2008 23:14:27 GMT UPDATE 1-Tropical Storm Nana forms in Atlantic - Reuters UPDATE 1-Tropical Storm Nana forms in Atlantic Reuters - 2 hours ago MIAMI, Oct 12 (Reuters) - Tropical Storm Nana, the 14th of the Atlantic hurricane season, formed on Sunday in the Atlantic Ocean east of the Caribbean islands, the US National Hurricane Center said. Forecasters: Tropical Storm Nana forms in Atlantic The Associated Press Tropical Storm Nana Forms Central Florida News 13| El Nuevo Herald - Orlando Sentinel - CBS 4 - WFMY News 2 all 175 news articles Publ.Date : Sun, 12 Oct 2008 21:29:57 GMT RSStoBlog RSS Parser

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy... Read More

Credit Cards and How To Choose Them:

It may seem like a simple question but its important... Read More

What You Should Know About Credit Counseling

Credit counseling is a free service that many people with... Read More

Which Credit Card?

Bewildered by the sheer variety of debit cards and credit... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

Learn About Prepaid Credit Card

Prepaid credit cards also called stored value card can be... Read More

Free Credit Report ? A Website Typo Could Be Costly

In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More

0% Credit Cards

These days, credit cards in the UK are competing with... Read More

Types of Credit Cards

There are a whole variety of different types of credit... Read More

The Next Person With Credit Problems Got Their First Credit Card Today!

One of the focus areas of my information is the... Read More

Compare Credit Card Offers and Reward Yourself

Here's a simple system on how to pay zero interest... Read More

Free Credit Report - Really

2005 marks the year that consumers will be able to... Read More

Identity Theft ? How Can You Prevent It Happening to You?

The nightmare of identity theft strikes an estimated 750,000 people... Read More

Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

About Search Entries:Every time a lender checks your credit history... Read More

Collection Agency Secrets for Collecting on Bad Debt

Getting worried that one of your clients, customers or patients... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

Guide to Credit Terms

Listed below is a useful guide to credit card terms.... Read More

Simple Identity Theft Protection

How many of you bank, shop, or transact other business... Read More

A No-Brainer Way Of Getting Credit And Credit Cards

What Is Your Credit Rating Now?If you have any charge... Read More

To Repair Credit Is No longer Satisfactory - Learn How To Earn A Millionaires Credit In 30 Days...

To repair your bad credit does not necessarily mean that... Read More

The Best Strategy To Erase Credit Card Debt

Credit card debt is a growing sickness in the United... Read More

When You Are Eligible For A Free Credit Report

By Federal law, you are entitled to one free credit... Read More

Credit Reporting: How Does It Work?

In order to determine a consumer's credit worthiness, creditors and... Read More

How Does a Creditor Determine Whether to Grant You Credit?

Credit 101How does a creditor determine whether to grant you... Read More

Warning: Free Credit Report Imposter Websites Springing Up on the Web

A recent amendment to the federal Fair Credit Reporting Act... Read More