A cashback credit card gives you money back on each retail purchase transaction you make , usually up to an annual limit . The amount of cash you get back may be tiered depending on the amount you spend , the more you spend the greater the cashback amount . There may be special introductory offers up to 5% cashback in the first few months.
A rewards credit card gives you a loyalty bonus for each purchase , and maybe at the time your card out . The rewards can be in the form of loyalty points or air miles .
who are they suitable for ?
if you pay off your credit balance each month a cashback or rewards credit card may be for you , because you won't be concerned about the intrest rate on the amount .
Take a look at our cashback credit cards best buys or rewards credit card best buys for the best deals around . for the full list of cashback or rewards credit cards go through the credit card product search.
what you should you look out for ?
look for how the cashback amount is calculated . its always a percentage of your spend but the tiers of spend will be different so think about how much you normally spend each month to work out how to maximise your cashback .
you'll usually only earn cashback or rewards when you spend on your card , but not on cash withdrawals or balance transfers.
so you can understand the ins and outs of credit cards , finance-newzz has put together guides on things to watch out for and the key factors to consider when purchasing a card .
if a cashback credit card or rewards credit card isn't for you , we've got guides and best buy tables for 0% balance transfer credit cards , donation credit cards , retail purchase credit cards and overseas usage credit cards .
what to do next
Take a look at the latest credit cards best buys to check the latest rates and deals on offer.
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