The Benefits of a Credit Card with Cash Back or Rewards

A credit card is a convenient and safe way to pay for your purchases. One way to maximize the benefits associated with your credit card is to select a card with a cash back or rewards program. Both alternatives effectively reward you for using the card.

The Ins and Outs of a Cash back Card

With a cash back credit card, you earn a certain amount (either a dollar amount or percentage) for your qualifying purchases. This amount depends on the terms of the card. For example, your card might give 1 percent cash back on all purchases except for purchases at gas stations; where your purchases at gas stations may be eligible for a higher 5 percent cash back. Categories that provide a higher cash back percentage may stay the same or change. Or, your card might offer a flat rate for all your purchases, regardless of their category.

The Difference Between a Cash back and Rewards Program

Rewards programs and cards that offer cash back are similar, but they have a couple of key differences. A credit card with rewards provides a certain number of points or miles for each dollar you spend. Once you've accumulated enough points or miles, you can cash them in.

An airline credit card's mileage program is an example of a rewards program, as are credit cards that provide points you can redeem online for gift cards.

How to Redeem Your Credit Card Points

Once you've accumulated points, you can redeem them. To do so, go to your credit card company's webpage and click to the rewards section. Here, you'll have a chance to view your reward options and how many points they will each cost.

Why You Should Take Advantage of a Credit Card with Rewards

A credit card with a cash back or rewards program offers you an incentive to use the card. You receive additional financial compensation for your normal spending habits.

Credit cards also offer protection against fraudulent transactions and unscrupulous retailers. While the credit card company investigates your issue, you aren't out your own money (like you would be if you had used a debit card).

Responsibly using a credit card also positively impacts your credit score. Your on-time payments will be reported to your credit report. For the best impact, make sure you don't max out your credit card. Try to limit your usage to 30 percent or less of the available credit line.

Clark County Credit Union's Rewards Card

Clark County Credit Union offers rewards credit cards and debit cards to all CCCU members. For more info on our rewards credit card program and our wide-range of services, contact CCCU at 702-228-2228, today.