What is a reward credit card?

Reward credit cards explained

Rewards credit cards allow cardholders to earn some form of points for making purchases with the card. The points can then, in turn, be used to redeem rewards of some kind. A cardholder accumulates rewards based on the dollar amount of his/her purchases with that particular credit card over a period of time.

Every credit card is a bit different and promotional offers often change, so be sure to thoroughly look over the terms and conditions for each specific card before applying.

Currently, you can find rewards credit cards that give:

• Gas rebates or rewards
• Entertainment rewards
• Retail rewards
• Cash back rebates or rewards
• Travel-related rewards

Some rewards credit cards come with an annual fee, but more and more cards can be found these days with no annual fee.