Rewards points credit cards are a type of credit card that you can earn points when making purchases. These credit card rewards points can be redeemed for free merchandise, travel, cash back, gift cards, and more. Different credit cards offer different amounts of reward points, and certain cards offer more rewards points for certain types of purchases (such as purchases made at department stores, gas stations, or hardware stores.) Compare rewards points credit cards below using our comparison tool.
How do standard rewards credit cards work?
With shopping rewards credit cards with the Visa or MasterCard logo on them, you are basically signing up for a standard credit card. They are accepted most places, like standard credit cards. The APR and credit limit on these cards should be comparable to any other standard credit card.
With these standard shopping rewards credit cards, you accumulate credit card rewards with your purchases. Most of these cards give you a small reward for all of your shopping and a larger reward when you shop at the linked store. For example, an Amazon.com store credit card gives you 3 points for every purchase with Amazon and 1 point for every purchase anywhere else.
Some shopping rewards credit cards also give additional rebates for purchases of food and gas. For example, the Costco store credit card gives you 3% back on purchases at gas stations and restaurants.
Specific Store/Retailer Credit Cards
With store credit cards that aren’t standard credit cards, you can only use your the card at that particular store and its affiliates. These shopping rewards credit cards usually have much lower credit limits and much higher APRs. However, they occasionally offer exclusive discounts and greater rewards than a generic credit card or other rewards card.
If you do a lot of shopping at a specific store, then a shopping rewards credit card with that store may be a good idea for you. With store rewards credit cards, you may get large coupons and special discounts. Some stores like J. Crew have private shopping events for their credit card holders.
Some stores may also give you bonus points or discounts when you apply. This can be a good deal if you have a particular purchase in mind, and you have also been planning on getting a store credit card.