A Rewards Card is a type of credit or debit card that rewards the cardholder based on their card use. Rewards can come in various forms, including cash back, points towards purchases, or travel miles.
Reward structures can be complex, with varying rewards for different types of purchases or rewards that change over time. For example, a card may offer 2% cash back on groceries, 3% on gas, and 1% on all other purchases.
Additionally, some cards may offer bonus rewards for spending a certain amount within the first few months of opening the account, or for referring friends.
While rewards cards can offer great benefits to consumers, it is important for cardholders to be aware of any associated fees, such as annual fees, and to manage their spending and payments responsibly to avoid accruing interest or falling into debt.
Additionally, credit card companies may change the terms of the rewards program, including the rate of rewards or the categories that earn bonus rewards, so cardholders should regularly review the program terms and consider whether the card still meets their needs.