One of the major kinds of credit cards is the credit cards that come with a rewards program or structure. This is offered as an incentive to consumers to encourage purchases with the use of the credit cards. Given their promise of reward, they are pretty popular and they are available in most major sectors. The idea of rewards can easily have you signing on to a credit card you do not really need. The key to making the right choice is knowing about the various kinds of reward credit cards and choosing only one that fits your situation best. Here is a guide on the major kinds of reward credit cards.

General rewards point’s credit cards

These kinds of credit cards provide a reward structure that offers a range of rewards from gift cards, pet supplies, hotel stays and much more. Some charge an annual fee while most do not. These cards are ideal for people able to make regular monthly payments since they are able to minimize the charges and gain from accrued rewards.

Cash back reward credit cards

These offer cash as the reward for points built up with constant use of the credit cards. The average amount earned is about one percent of the total purchases. Given the cost of giving back cash most providers charge an annual fee. As with the general rewards cards, these types of cards are suitable for people who can make timely monthly repayments.

Hotel and travel point credit cards

These cards are tailored to offer rewards for purchases or expenditure while traveling or in a hotel chain. They are of two types; those branded with specific hotel chains which only earn points for purchases in that hotel chain and the rewards are also limited to the hotel chain and there are the broader cards which cover major hotel chains, travel, theme parks etc.

Gas credit cards with points or rebates

These types of cards are in two categories, brand specific and general cards. General gas cards offer about one percent of purchases on general purchases but offer five percent cash back for gas purchases or auto maintenance at any gas station. On the other hand, brand specific cards will only offer the five percent cash back for gas/ auto maintenance services.

Retail point rewards

These work in the same way as gas rewards only this time the cards work with specific retailers. Redeeming the points has to be done at the co-branded retail store.

All the credit cards with rewards are suitable for people who can make timely payments to avoid high interest rates.