Do you think choosing a rewards credit card is easy? Think again! Choosing a rewards card means picking a side: cashback or travel benefits. Both are unique and have their own set of pros and cons.
Cashback is flexible, while points or miles can land you a fully paid vacation! Ultimately, deciding between the two comes down to your lifestyle choices. So let’s take a look at both options in greater detail.
Cashback
You earn rewards in dollars, not miles or points, when getting a cashback credit card. The money can be used as a credit on your statement or redeemed for gift cards and others, depending on your financial institution.
Cashback is perfect for those who want to maintain a low-maintenance credit card. Redeeming dollars takes next to no effort or research. Therefore, it is ideal for those who are not big on travel perks or rewards and just want a decent cashback on their everyday purchases.
That said, cashback credit cards come with their cons. They lack the premium perks you’d find in some top-end travel cards. They also tend to charge foreign transaction fees, which isn’t ideal when travelling overseas, and their bonuses are less lucrative than travel cards.
Since getting a cashback credit card is to earn money on purchases, picking a card that provides bonuses and rewards on the categories you normally spend on is essential. For example, if most of your spending is on groceries, you’d want a cashback card that offers quality cashback in the grocery category.
Travel
Travel credit cards offer rewards like air miles or points that don’t have a set monetary value. Depending on your travel card type, you can redeem these points on future travel, hotel bookings, merchandise, gift cards, or even cash back. To get the most out of these rewards, you should redeem them for travel.
Travel credit cards normally partner with specific airlines to provide you with the option to transfer your rewards to the airline’s loyalty program. This can further maximize your travel rewards. That said, travel credit cards often come with high annual fees.
What To Choose?
When choosing between a travel or cashback card, be realistic about how you will use it. A travel card can be an excellent choice if you’re a frequent flyer because you can redeem points for future travel. On the other hand, if you’re looking for an affordable, no-nonsense credit card that offers you simple cashback on everyday purchases, opt for a cashback credit card.
Where to Apply for The Best Credit Cards
If you’re planning to get your hands on some of the best Canadian cashback credit cards, head to Great Canadian Rebates. Our online platform is the home to some of the best cashback and travel credit cards. Whether you want travel credits or the best cashback card for online shopping, we have it all. Visit our website for more information.