Decoding Credit Card Rewards

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Cash Back vs. Points: Decoding Credit Card Rewards

Rewards credit cards are popular financial tools that consumers use to pay for expenses while earning benefits like cash back, travel points, retail credits and more. Selecting the right rewards credit card can be a bit challenging due to the amount of options. To make the best decision, it's important to consider your personal spending habits, lifestyle preferences and financial goals. This involves looking at factors such as annual fees, interest rates, reward structures and redemption options. By understanding the details of different credit card rewards programs, you can select a rewards credit card that aligns with your personal priorities and financial goals.  

Cash Back Rewards Cards

Cash back cards provide a simple and gratifying way to earn rewards for your day-to-day purchases. With cash back cards, you can receive a percentage of your spending back in cash, which can be redeemed through statement credits, checks or direct deposits. This simple reward structure makes these cards an appealing choice for those seeking straightforward and transparent rewards for their everyday purchases. For example, with the KEMBA Visa Signature® card, you can get 1.5% cash back on all your purchases.

Benefits of Credit Card Points and Travel Rewards

Points-based cards typically offer credit card points tied to specific categories such as dining, travel, groceries and more. Specifically, travel rewards cards within this category provide points that can be redeemed for various travel-related expenses, including flights, hotel stays and car rentals. Instead of point accumulation, some cards, like the KEMBA Visa Signature®, often come bundled with additional perks such as airport lounge access, travel insurance and hotel theft protection, making them particularly appealing if you travel frequently.

Brand, Retail and Lifestyle Rewards

Some credit cards align with specific brands or lifestyle choices, offering unique benefits like special discounts, exclusive access to events or higher rewards rates for brand-related purchases. These cards are ideal for customers who are loyal to specific brands or those whose spending aligns with the card's reward structure. Beware, oftentimes there are enticing sign-up offers associated with opening a retail card but they are usually paired with an extremely high interest rate. Paying off your balance every month is essential to maintain financial wellness with a retail or brand credit card.


The Benefits of KEMBA Cards

KEMBA Financial Credit Union offers two credit card options – the Visa Platinum Rewards and Visa Signature®. Both cards come with exciting credit card rewards:

  • Special Introductory Offers: New cardholders can enjoy introductory offers, potentially saving money and earning more rewards.
  • Competitive Interest Rates: KEMBA credit cards typically offer lower ongoing interest rates compared to national averages.
  • Cash Back Rewards: Earn cash back on everyday purchases, a straightforward and valuable reward.
  • No Annual Fees: Enjoy the benefits without the burden of annual fees.

KEMBA Can Help You Choose the Right Card

If you are exploring your options for a new credit card, KEMBA can help. Our rates are competitive and our cash back perks make our credit card options a great tool to help you manage your budget and get rewarded at the same time. With our 12 area branches, you can visit your local credit union branch or contact our dedicated member service team at 614.235.2395 and select Option 4.


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