Not All Credit Cards Are Created Equally
There are a lot of credit cards out there but they are not all the same.
Sure the principal is the same. You purchase something using your credit, and then you pay it back over time.
Credit card companies want your business so they sweeten the pot by offering rewards, cash back or points.
There are different types of credit cards like gas cards or retail cards that are geared toward use at a specific place.
Gas cards are normally issued by large gas chains and they allow you to pay for gas and other items that the store sells. Some really big chain gas stations offer credit cards that can be used at other retailers as well.
Retail cards are typically for one store only or for only the stores that fall under a certain corporate umbrella or brand.
A lot of the gas cards offer discounts on gallons of gas as a reward. Some retail cards offer points that can be saved up to receive free or discounted items.
Gas cards and retail credit cards are the easiest types of cards to be approved for.
Cash Back Vs Points
Credit card companies are very competitive, and in the spirit of good old fashioned competition, offer promotions that will earn you goodies back for using the card.
In some cases the reward is cash back. In some cases the card offers points for spending.
The points can be used for purchases. The points can also be used for discounts and other programs.
For some people they prefer to get cash back and for other people they prefer to be able to take advantage of the discounts or free flights that can be earned.
Both the cash back program and the points program can be advantageous and it can come down to personal preference.
Depending on what your earning goal is for your credit card use either type of plan can be beneficial.
For example, if travel is your thing then having a credit card that offers travel rewards in the form of deep discounts on flights may be something that would pique your interest.
If you are all about the cash, then a credit card that offers a cash back reward may be more of your kind of card.
Some cards offer both or the option of either.
*You may also be interested in: The best sign-up credit card bonus from Citi
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