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The different types of reward credit cards

One must be careful and choosy when it comes to opting for rewards based credit cards just like any other commodities. Credit card companies offer their services and can also trick you into opting for their services. The basic rewards they offer at low introductory rates, gas rewards, frequent flier miles, cashback, and points for purchases. There are many other offers and discounts you need to look before choosing a reward credit cards.

Travel credit cards
Travel credit cards might be the best option for you if you are an avid traveler for business or leisure. This is also applicable for people who stay in hotels for long periods of time. You can get airline miles credit cards when you are loyal to one airline. Airline miles credit cards offer best rewards for people who travel over a long period of time.
Hotel reward credit cards
Hotel rewards can probably save your money if you spend more on hotels than on airlines then this is probably the best type of card for you. These reward credit cards help in gaining rewards when you are loyal to a single brand of hotel. Some cards allow you to choose your rewards for the points that are collected including travel expenses and flight charges.
Cashback credit cards
Cashback credit cards grants you points when you purchase anything or make bill payments. The higher your balance is and the faster you pay, the more rewards you will gain. Some cashback reward credit cards give more points on some purchases while lesser on others.
Airline miles credit cards
These reward credit cards are becoming popular among travelers. These are ideal for frequent fliers. The card offers points on every purchase which can be redeemed for free travel or discounted airfare. These can also be used for merchandising. There are some airline-sponsored cards as well as bank-sponsored cards, however, it is advisable to take a decision that provides maximum benefits.
Gas credit cards
Gas credit cards are becoming popular. These reward credit cards offer points per dollar spent on gas. These give you cashback rebates. They are like the cashback credit cards; however, you get maximum benefit when you spend on gas. Some cards offer you additional cashback or reward points on other purchases like groceries or drug stores.

Many credit cards are a combination of one or more types of the above-mentioned cards. Below are mentioned few best rewards cards –

BankAmericard Travel Rewards® Credit Card
The company offers 1.5 points for every dollar spent. In addition, there is no annual fee or transaction fee with 20,000 bonus points of $1,000 spent on first three months. Customers with Bank of America checking or savings account get additional 10% bonus. This card does not have hotel or airline partnership. You can also earn rewards with everyday purchases and great signup bonuses. The card offers 0% APR for 12 billing cycles for purchases with a regular variable APR of 16.49%-24.49%. There are no annual fees or foreign transaction fees, however, credit score required is above 660.
Venture® from Capital One® Rewards credit card
The card offers 50,000 miles once you spend $3,000 on purchases with first 90 days. You can earn unlimited 2X miles for every dollar spent on every purchase each day. In addition, extra 10 miles per dollar spent on hotels when you pay with Venture card at Hotels.com. There are no foreign transaction fees and zero annual fees for the first year ($95 after that). There is no introductory APR and the regular variable APR is 14.49-24.49%. The card is ideal for anyone who makes travel-related purchases.
Bank of America® Cash Rewards Credit Card
The card offers 3% cashback on gas with 2% cashback at grocery stores and other purchases. The companies will earn $150 cash rewards bonus on spending $500 in the first 3 months. The card also offers 0% introductory APR for 12 billing cycles on purchases as well as balance transfers within first 60 days. The variable APR is between 14.49%-24.49% with 3% fee applies for balance transfers. However, the card offers a penalty of 29.99%.
Chase Freedom® Credit Cards
The company offers bonus after you spend $500 on purchases in your first three months from account opening. You can earn 5% cashback with limits of $1,500 in combined purchases on bonus categories. In addition, unlimited 1% cashback on all other purchases. The card offers 0% introductory APR for 15 months from account opening on purchases with variable APR of 16.24-24.99% after that. Balance transfer fee is 5% with a minimum of $5. Cashback does not expire if the account is open. There is no minimum amount to redeem cashback. Chase Freedom allows for the most cashback in bonus categories without any annual fee.
It is recommended to repay the cards on time, as the penalties may outweigh rewards.