Some high-end credit cards give back a percentage of what you spend. They call this “rewards,” “cashback,” or “points.” Credit card companies do this because they want you to spend more on that card.
If you travel a lot, then you should get a 2x rewards card with the lowest possible annual fee.
See 2x Rewards Cards
If you don’t travel much, then you should get a 2% cashback card with no annual fee.
See 2x Cashback Cards
In general, you want to get a card with 2% or 2x rewards on all purchases. 1% or 1x rewards is a lame deal. FYI, debit cards almost always give 0% rewards.
Still confused? “Rewards” is like getting 1 or 2% off all of your purchases.
Here are three more things to remember.
- You need a good credit score to get a good credit card.
- You shouldn’t run a balance on these cards, because they have super-high interest rates.
- Finally, don’t be fooled by special rewards rates on different categories, e.g. “5x” on groceries. While it might be possible to get a slightly better deal, having a bunch of different cards is more likely to be confusing.
Questions? Ask us: firstname.lastname@example.org.