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Choosing Between Credit Card Rewards: Cashback or Travel?

Equal Housing Opportunity

posted on Friday, July 30, 2021 in Financial Tips

Credit card rewards offer multiple perks and benefits—from store discounts to paid holidays. The dilemma, however, lies in choosing between cashback or travel benefits.

Cashback is more straightforward—you earn back a percentage of your purchases. Meanwhile, travel rewards, allow you to redeem points or miles on partner accommodations, airlines, and many others. Ultimately, what you choose will depend on your lifestyle, but if you’re having a hard time deciding, here are a few important things you need to know:

Cashback

Can you get cashback with a credit card? Yes, you can! With a cashback card, you get money back for eligible purchases such as gas, groceries, travels, and dining out. This can be redeemed through gift cards, bank deposits, or a prepaid debit card.

  • Pros: Most cashback cards offer sign-up bonuses and don’t charge annual fees. You’ll also have access to shopping perks like extended warranties and return guarantees on your purchases.
  • Cons: Some cards have limits on the amount of cashback you can receive from your purchases. You’re also charged a foreign transaction fee for purchases made overseas.  

Travel Rewards

A travel rewards card allows you to earn points or miles on certain purchases. They come in two types—a general travel card which can be used for any travel-related expenses, and a co-branded card which can only be used on partner hotels and airlines.

  • Pros: If you’re big on traveling, whether for holidays or business trips, travel rewards can be used to pay for hotel accommodations, baggage fees, flights, tour packages, and more.
  • Cons: They usually have stricter eligibility requirements and higher annual fees. Some also charge foreign transaction fees for overseas expenses.

Maximize Your Credit Card Spending Today!

At Community 1st Credit Union, we’ll help you choose a credit card that best suits your lifestyle. Whether you want to pay a debt, improve your credit standing, or earn cash rewards, we have the ideal card for you! You’ll get to enjoy amazing features like mobile purchasing capabilities, zero fraud liability, online credit card application, and 24/7 customer service. If you have questions regarding our services, or if you simply need help with the online credit card application, feel free to reach out to us!