Credit cards offer their cardholders a variety of different rewards. The two that we are often left trying to decide between are cash back and travel rewards. Both offer great opportunities to earn while you spend, so it can be a difficult choice. 

Whichever one works for you is highly dependent on your spending habits and your lifestyle. That, in essence, means that it is only you who can decide which one you’d prefer. But you can be somehow encouraged to making the right move if you find out the advantages and how they both work.

Also, by knowing what to expect, you can evaluate your spending to help you make the best choice. First of all, let’s look at the advantages of both cards since they both offer great perks to their users.


Cash Back Reward Cards

If you rarely travel internationally, then a cash back card should be the genuine contender for you in this race. Another thing is that they have a clear earning structure that is quite simple. So, it will be easy for you to estimate your rewards. Also, they usually come in with no annual fees.

Travel Reward Cards

Now, if you love traveling abroad, then the travel rewards may be your cup of tea. Especially if you’d like to upgrade your seat and make your travels more comfortable, this is the one you should choose.

The other thing is that some travel cards can transfer points to hotel loyalty programs. Also, for some cards, you can get free airport lounge access. Now, with all the advantages laid out, here are some of the disadvantages to both.

Cash Back Disadvantages

While there are a lot of advantages to holding a cashback credit card, there are also some disadvantages. First of all, they have modest sign-up bonuses. This is mainly because they don’t charge annual fees. 

In addition, you will get exactly what was advertised; there is no way to hack the rewards on most of the cash back cards. They also offer the fewest perks of almost all the cards in the market.

Travel Rewards Disadvantages

One of the cons of the travel reward cards is that you usually have to pay annual fees. The fees are usually in the region of $100, but some may be lower. Somehow, the issuers have to pay for all the perks they are offering.

They are also complex to understand, unlike cashback cards where you get what is advertised. Points and miles can vary, and they can be difficult to calculate or keep track of. They are also less flexible as you can’t easily change your rewards to cash without losing tremendous value on them.

Top Picks For Both Types Of Cards

The top pick on the cash back card has got to be the Bank of America Premium Rewards Visa®. This card gives you a large signup bonus of up to 50,000 points when, in the first 90 days, you spend $3,000.

With every dollar you spend on dining or traveling, you get 2 points. If you’re a Preferred Rewards member, you get up to 75% on rewards on every purchase you make.

When it comes to travel reward cards, the best pick has got to be the Chase Sapphire Preferred®. With this card, you get 60,000 points after you’ve spent $4000 in the first three months of signing up. When you redeem your travel through Chase Unlimited rewards, you get points worth up to 25%.

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Both cards offer some of the best rewards, but which one is best for you will depend on your lifestyle. If you’re all about traveling abroad, then a travel card works best. Also, you have to be savvy to understand how the rewards process works. Cash back cards, on the other hand, are quite easy to understand as what you see is exactly what you get.