With so many options out there, it's easy to feel overwhelmed about picking the right card. But fear not, because I'm here to show you that the rewards can be highly satisfying if you know the ropes!
DID YOU KNOW A CreditCards.com survey from 2023 revealed that 23% of rewards cardholders hadn’t redeemed any rewards that year. Even more surprising, a 2024 report found that 31% of consumers now cite lengthy redemption processes as a major reason for leaving rewards unclaimed. Crazy, right?!
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Hopefully, they're not missing out on some rewarding opportunities and they're all just waiting on the right time to redeem for a nice big vacation.
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From getting cash back on your daily coffee fix to earning flight miles for that dream vacation, rewards credit cards can be a game-changer if you choose wisely.
Lucky for you, we'll cut through the jargon and equip you with the know-how to pick the perfect rewards credit card for your lifestyle. Let's get started!
what is a rewards credit card? 
Imagine going shopping, swiping your card, and getting a little something back each time. Sounds pretty sweet, right? That's what rewards credit cards do! They're like your best shopping buddy who always pitches in.
want to take a quick step back to learn the basics of rewards credit cards?
I understand! Here's what a rewards credit card actually is, how it works compared to a regular credit card, and more.
here's a quick look at what we'll cover
what different types of rewards credit cards can you get?
There are several types of reward credit cards to choose from including:
- Cash Back Cards: These are the equivalent of that friend who always insists on paying you back. For every purchase you make, they give you a percentage back in cold, hard cash (well, usually as a statement credit, but you get the idea).
- Points Cards: These cards are like that friend who loves to trade. You earn points for every dollar you spend, which you can trade in for goodies like merchandise, gift cards, or travel bookings. It's like a game where spending money earns you points and points earn you fun prizes!🥳
- Travel Rewards Cards: These are for those bitten by the travel bug. Every purchase brings you closer to your next vacation. You earn miles or points you can put towards flights, hotels, and sometimes even car rentals. Some of these cards also give you VIP perks like lounge access, just to add a sprinkle of luxury to your journey.
- Airline Rewards Cards: Frequent flyer? Then these cards might just be your ticket to paradise. They earn you miles with specific airlines and can get you priority boarding, free checked bags, and more. It's like flying first class without the price tag!
- Gas Rewards Cards: Your perfect road trip companion. Every time you fuel up, you earn points or cash back. With one of these in your wallet, every drive is just a little bit sweeter.
- Store-Specific Cards: These are like being part of an exclusive club. You get special rewards when you shop at specific stores or brands. It's like the store's way of saying "Thanks for your loyalty, here's a treat!"
- Rotating Categories Cards: These are for those who love a good surprise. Every quarter, the categories in which you earn extra rewards change. It could be groceries one quarter, gas stations the next, and restaurants the quarter after that.
There are quite a lot of cards to choose from but when selecting can mainly come down to what you want or need.
what to consider when selecting a rewards credit card?
When looking for a rewards credit card, it's essential to ask the following questions to make an informed decision.
What Are My Financial Goals?
When selecting a reward credit card, it's essential to first outline your financial goals. Are you looking to save money on travel? Then a card with travel rewards or airline miles might be your best bet. If your goal is to save money on everyday purchases, consider a cash-back card that offers a percentage back on things like groceries or gas. For those who want to pay down debt, a card with a low-interest rate should be a priority.
Remember, the key is to choose a card that aligns with your spending habits and financial objectives. It's not about getting the card with the most rewards, but rather the one that will provide the most value based on your unique needs and goals.
Your credit score can influence the type of credit card available to you. When researching or chatting with the financial institution, ask about the credit score requirements for the cards you're considering.
Depending on the lender's requirements, many are on the lookout for a credit score of 670 or higher for a rewards credit card. So if your FICO score is chilling in that range or even higher, you're in a good place.
QUICK TIP: According to a recent Experian study from 2024, consumers with a single active credit card had an average FICO® Score of 718, slightly above the national average of 715. This suggests that responsible credit card use can lead to higher credit scores, which may open the door to more lucrative rewards card options.
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But don't let that deter you from getting a rewards credit card. If your credit score isn't quite there yet, there are lenders that will work with you and offer a credit card that'll work for you.
For tips on understanding credit scores and how to improve it, here's what'll help
How Will the Card Impact My Credit Score?
Understand how opening a new credit card might affect your credit score and credit history.
Psst... If you're concerned about your credit score being affected if you apply for a loan, here's what you should know before proceeding.
Many credit cards have an annual fee and they all vary, and it's possible you may come across a rewards credit card with an annual fee of $25 or more. Before getting a rewards card, make sure to determine if you're comfortable paying a fee in exchange for the card's benefits.
If you're looking to avoid the fee, there are ways:
- Negotiate with the Card Issuer: This can be as simple as calling your card's customer service line and asking them to waive the fee. Some card issuers may waive the fee if you use the card frequently or if you've been a long-time customer with a good payment history.
- Ask for a Downgrade: If negotiation doesn't work, you could ask to downgrade your card to a version that doesn't have an annual fee. Just be aware that this might also mean losing some of the rewards or benefits that come with your current card.
- Switch to a No-Fee Card: If all else fails, consider switching to a credit card that doesn't charge an annual fee. There are plenty of options available, and many still offer rewards programs. Just be sure to read the fine print to understand the terms.
 Psst.... Skyla’s Visa Signature and Visa Platinum Rewards cards come with no annual fee – and yes, you still get all the perks, including rewards and more. Definitely something to keep in mind when you’re comparing rewards credit cards.Learn more here >
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What Type of Rewards Do I Want?
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Again, the key is to choose a card that aligns with your spending habits and financial objectives. So when thinking this through, are you interested in cashback, travel rewards, points, miles, or specific perks like hotel stays or airline benefits? Define your preference for rewards.
If you plan to carry a balance, ask about the annual percentage rate (APR) and look for cards with competitive interest rates.
In Forbes Advisor's latest Credit Card Statistics And Trends, " The average credit card interest rate in the U.S. on accounts with balances where interest was assessed was 21.47%."
Psst... At Skyla, the interest rates on our credit cards including our Visa Signature Credit Card are lower than that. Check it out >
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Are There Introductory Offers?
When exploring the options for a rewards credit card, one of the key aspects to consider is the introductory offers. If you don't know about introductory offers - these are typically special deals provided by the card issuer to new account holders for a limited period.
Introductory offers can take several forms. For instance, some cards offer a 0% Annual Percentage Rate (APR) for balance transfers or purchases made within a certain timeframe. This essentially means you could move your existing debt onto the new card or make large purchases without accruing any interest during the promotional period.
However, it's essential to understand when this period ends, as the APR will increase to the standard rate afterward.
Don't know enough about 0% APR credit cards? Here's what'll help.
Another common introductory offer is sign-up bonuses. These are extra rewards—such as points, miles, or cash back—that you earn when you spend a specific amount within the first few months of opening your account. These bonuses can provide immediate value and a substantial boost to your rewards balance.
Psst... Remember, it's crucial to look beyond these initial perks and evaluate if the card aligns with your spending habits and financial goals in the long run.
QUICK TIP: Always read the fine print to avoid any surprises down the line, such as high-interest rates after the introductory period or steep penalties for late payments.
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Are There Any Fees Beyond the Annual Fee?
Some cards have additional fees, like foreign transaction fees or balance transfer fees. Understand these potential costs.
Psst... Here's the scoop on Skyla’s Visa Signature and Visa Platinum Rewards Credit Cards: there’s no annual fee and no balance transfer fee on either card.
Just a heads-up – a 3% cash advance fee does apply. And if you're specifically looking for a 0% APR² intro rate on balance transfers, that perk is exclusive to the Visa Platinum Credit Card. Learn more here>
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What Is the Redemption Process for Rewards?
Find out how you can redeem the rewards you earn. In my personal opinion, redeeming rewards should be as easy peasy. but make sure because not all credit card issuers have a seamless redeeming rewards process. there may be limitations.
Psst... Want to see how easy it can be? Check out Skyla's Awards Catalog for a full sample of redeemable items and a look at how to redeem points.
FUN FACT: Redeeming points with Skyla is truly a breeze. I personally use our Platinum Rewards Card, and let me tell you—it’s as easy as pressing a button and poof—the rewards are there!
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What Benefits Come with the Card?
Explore the card's additional benefits, such as travel insurance, extended warranties, purchase protection, and access to airport lounges, if applicable.
Is there a Rewards Cap or Expiration Date?
Some financial institutions and other credit card issuers impose limits on the rewards you can earn, while others may have expiration dates on earned rewards. Be aware of these conditions.
What's the Customer Service Reputation of the Card Issuer?
Now remember, while it's exciting to think about all those rewards and points you can rack up with a new credit card, it's also important to consider the customer service reputation of the card issuer. Think of it like this: When you get a flat tire, you want reliable roadside assistance, not someone who leaves you stranded!
So, do a little homework on the card issuer. You can find plenty of reviews and rankings online that will tell you how each company measures up.
But don't stop there! Keep an eye out for any red flags. If there's a trend of consumer dissatisfaction with a particular card issuer, that's something you'll want to consider.
Remember, your credit card should be more than just a tool for earning rewards - it should also come with the peace of mind of knowing that if you run into any issues or need assistance, you'll be taken care of promptly and with a smile.
does skyla have a rewards credit card?
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We have two! Here's a quick breakdown of the two.
Visa Platinum Rewards Credit Card
This beauty lets you buy what you want and get rewarded for it!
Earn 1X rewards per $1 and 10,000 bonus points when you spend $1,000 in 90 days. Enjoy 0% APR for 12 months, and more.
Visa Signature Credit Card
This gem lets you spend big and get rewarded even bigger!
Earn 2X rewards per $1 and 25,000 bonus points when you spend $1,000 in 90 days. Enjoy 0% APR for 12 months, limits up to $50,000, and exclusive Visa perks—all in a sleek, contactless metal card.
whats next?
Alright, we've covered quite a bit of ground here, haven't we? We've demystified the world of credit cards, rewards, and all those pesky little details that can sometimes seem as clear as mud. But remember, the most vital part of this journey is you! It's all about finding the card that syncs with your lifestyle, spending habits, and financial objectives.
Your next step? Put everything you've learned to the test and start searching for that special card that'll make everyday spending more rewarding.
When you discover the rewards credit card that suits your lifestyle and spending habits, don't hesitate to make the most of it. Remember, every purchase opens up a world of lucrative opportunities and perks. Experience the thrill of earning while you spend, and enjoy the myriad of benefits that come with your card. Don’t let these rewarding opportunities slip by.
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As always If you have any questions or comments, our Customer Service Representatives are here for you. You can send an email, give us a call at 704.375.0183.
OK, SO HERE'S THE FINE PRINT
1To qualify for the 25,000 rewards bonus, a total of at least $1,000 in net purchases (purchases minus returns/credits) must post to your account within 90 days from the date your Signature credit card is opened. Purchases that may fall outside of the 90 day period, such as a delay in merchants submitting transactions to us or if the purchase date differs from the date you made the transaction (for example, if you buy goods online, the purchase date may be the date the goods are shipped) are not eligible. Cash advances and balance transfers do not apply for purposes of this offer and may affect the credit line available for this offer. Existing or previous cardmembers are not eligible for this product if they opened their card prior to May 1, 2025. Good Standing = Your Card Account must not be canceled or past due at the time of fulfillment of any offers. In rare instances, your period to spend $1,000 may be shorter than 90 days if there is a delay in receiving your Card. Bonus rewards will show as redeemable within 1 – 2 billing periods after they are earned. All other Rewards program terms and conditions apply. Please visit skylacu.com/credit-cards/signature for additional Rewards Program information. Skyla Credit Union reserves the right to modify or cancel promotion at any time.
2During the first twelve (12) months from account opening, the rate for purchases will be 0.00% Annual Percentage Rate (APR). After the twelfth (12) month, your balance for purchases will adjust to the rate in your credit card agreement. As of the first day of each month, the APR for variable rate Visa credit cards ranges from CONTACT.WEBSITE_SIGNATURE_CREDIT_CARDS_RATE% to 17.95%. This rate will change with the market based on the Prime Rate. Rates are subject to change without notice. APR may vary depending on a review of your credit score and other underwriting factors. Standard underwriting terms and conditions apply.
3To qualify for the 10,000 rewards bonus, a total of at least $1,000 in net purchases (purchases minus returns/credits) must post to your account within 90 days from the date your Platinum Rewards credit card is opened. Purchases that may fall outside of the 90 day period, such as a delay in merchants submitting transactions to us or if the purchase date differs from the date you made the transaction (for example, if you buy goods online, the purchase date may be the date the goods are shipped) are not eligible. Cash advances and balance transfers do not apply for purposes of this offer and may affect the credit line available for this offer. Existing or previous cardmembers are not eligible for this product if they opened their card prior to October 1, 2023. Good Standing = Your Card Account must not be canceled or past due at the time of fulfillment of any offers. In rare instances, your period to spend $1,000 may be shorter than 90 days if there is a delay in receiving your Card. Bonus rewards will show as redeemable within 1 – 2 billing periods after they are earned. All other Rewards program terms and conditions apply. Please visit skylacu.com/credit-cards/platinum-rewards for additional Rewards Program information. Skyla Credit Union reserves the right to modify or cancel promotion at any time.
2During the first twelve (12) months from account opening, the rate for balance transfers will be 0.00% Annual Percentage Rate (APR). After the twelfth (12) month, your balance for balance transfers will adjust to the rate in your credit card agreement. As of the first day of each month, the APR for variable rate Visa credit cards ranges from 11.90% to 17.95%. This rate will change with the market based on the Prime Rate. Rates are subject to change without notice. APR may vary depending on a review of your credit score and other underwriting factors. Balance transfer amounts may not exceed your approved credit limit. Standard underwriting terms and conditions apply.
5APR = Annual Percentage Rate
Yanna
As the Content Specialist and author of the Learning & Guidance Center, Yanna enjoys motivating others by uncovering all that's possible in the world of finance. From financial tips and tricks to ultimate guides and comparison charts, she is obsessed with finding ways to help readers excel in their journey towards financial freedom.
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