What are the advantages of using a rewards credit card?

@garret_hahn 

There are several advantages of using a rewards credit card:

1. Earn rewards: The primary benefit of a rewards credit card is the ability to earn rewards on your spending. Depending on the card, you can earn cash back, points, miles, or other types of rewards for every dollar spent. These rewards can be redeemed for a variety of things such as travel, statement credits, merchandise, or gift cards.
2. Cashback: Many rewards credit cards offer cash back as a reward. This is essentially free money that you receive for using the card for everyday purchases. Some cards offer a flat rate of cash back on all purchases, while others have bonus categories that earn a higher percentage of cash back.
3. Travel rewards: If you enjoy traveling, a rewards credit card can help you earn points or miles that can be redeemed for flights, hotel stays, or upgrades. Some travel credit cards also provide additional perks such as travel insurance, airport lounge access, and concierge services.
4. Sign-up bonuses: Rewards credit cards often offer sign-up bonuses to attract new customers. These bonuses typically require you to spend a certain amount of money within a specified time period, and in return, you receive a large number of bonus points or miles. This can be a great way to jumpstart your rewards earning.
5. Additional perks and benefits: Rewards credit cards often come with additional perks and benefits such as purchase protection, extended warranties, price protection, and access to exclusive events or experiences. Some cards also provide travel insurance, rental car insurance, and 24/7 customer service.
6. Building credit history: Using a rewards credit card responsibly and making timely payments can help build or improve your credit history. This can potentially lead to better credit scores, making it easier to obtain loans or favorable interest rates in the future.

However, it's important to note that rewards credit cards may have higher interest rates and annual fees compared to non-rewards cards. It's crucial to manage your spending and pay off your credit card balance in full each month to maximize the benefits and avoid interest charges.

@garret_hahn 

To summarize, the advantages of using a rewards credit card include:

1. Earning rewards on your spending.
2. Cashback on everyday purchases.
3. Accumulating points or miles for travel rewards.
4. Sign-up bonuses that can jumpstart your rewards earning.
5. Additional perks and benefits such as purchase protection and concierge services.
6. Building or improving your credit history.
7. Potential access to exclusive events or experiences.

However, it's important to consider the potential higher interest rates and annual fees associated with rewards credit cards and to manage your spending and payments responsibly.