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Choosing the right rewards credit card can save you money. You can earn cash back on everyday purchases, get discounts at stores like Costco (COST), Walmart (WMT) and Target (TGT), or build up points and miles with travel rewards credit cards. Yahoo Finance senior credit-card reporter Ben Walker breaks down what to consider if you’re looking for a rewards credit card.
Find out more about credit-card rewards.
Best rewards credit cards for 2025: Earn top cash back, points, and miles
Best travel credit card: How to choose
Cash-back credit cards: finding the best one for you
Best credit card for gas rewards: How to save at the pump
What are a million credit card points worth? It depends. On a six-week trip to Asia, my family and I spent over a million points of credit card rewards to cover nearly $60,000 worth of travel expenses. That included business class flights for everyone, as well as all the hotels. I love to travel, and I'm passionate about helping other people travel too. I write about credit cards for Yahoo Finance. Let me help you find the best rewards credit card to meet your lifestyle and goals. To get started, let's cover some basics.
There are three main types of rewards credit cards: cashback credit cards, store credit cards, and travel rewards credit cards. So, which one is right for you?
It depends on your spending habits, as well as if you're a traveler, it depends on your travel preferences.
Does the card reward you for your kind of spending? Take a look at your bank statements and receipts. Where do you spend the most money? For instance, if you're mostly buying food and gas, consider a low annual fee cashback card with higher rewards rates for groceries and filling the tank.
One of the reasons a cashback credit card makes sense for a lot of people is because the rewards are straightforward. You're just getting cashback that you can use towards your credit card balance, or you're literally getting cash in your bank account that you can use for anything.
Do you buy everything at a big box store or online? Take a look at a store rewards card where your loyalty will pay you back with points and discounts. You might have a Costco card that earns rewards, and then you can use those rewards towards your next Costco purchase. You can have one for Walmart or Target. Or maybe you want a card that will generate a lot of miles for travel from a wide range of spending. In that case, a travel card should probably be on your list. So, when your everyday spending, what you buy, and where you buy it will help guide you toward the best rewards credit card for you. Scan the QR code for more information about the best rewards credit cards.