A very common question you hear asked these days is which is the better, cash back or rewards credit cards loyalty schemes. The following is a brief explanation of the cash back vs. rewards credit cards loyalty schemes argument:
Cash Back Credit Cards
As their name suggests, cash back credit cards offer customers the chance to reclaim a certain percentage of their credit card expenditure in the form of a cash back payment. This payment can be made either as a credit on the balance of the customers credit card statement or in the form of actual cash being paid to the customer.
In most cases, the cash back being offered is in return for purchasing certain brand-named products or for using the card in particular stores. Thus, while it is true that you are getting a percentage of your purchase price back as a cash back reward, the bigger question you should be asking yourself if whether or not you would have purchased the product in that shop had you not been offered the cash back!
Rewards
By far the more popular credit card loyalty scheme is the rewards program. Here, a card provider will offer a certain number of rewards points per threshold...