Rewards Credit Cards: The Basics

Rewards credit cards work by offering rewards or cash back to consumers based on credit card purchases. Airlines were among the first to offer rewards credit cards by offering customers the ability to accrue airline miles as a reward for purchases. Other companies offer travel or hotel rewards, cash back rewards, and mortgage rewards.

Overview of popular rewards credit cards:

1. Airline rewards credit cards / Travel rewards credit cards

   • Sponsored by airlines or through banks
   • Typically earn 1 airline mile for each dollar spent (subject to specified caps) on airline rewards credit card
   • Miles can be redeemed for travel on participating airlines

2. Business rewards credit cards

   • Rewards credit cards for business owners
   • Sponsored by banks and credit card companies
   • Typically offer business-related discounts, travel services, hotel and airline rewards, etc.

3. Hotel rewards credit cards

   • Sponsored by hotels or through banks
   • Earn points to redeem towards hotel stays
   • Some hotel rewards credit cards also allow points to be redeemed for airline miles

4. Cash back rewards credit cards

   • Allow cardholders to earn a cash rebate on purchases made through their credit card
   • Cash back rewards vary from 1% - 5%
   • Card holders may receive cash back rewards through rebate check or account credit

5. Mortgage rewards credit card

   • Sponsored by mortgage lenders or through banks
   • Earn points for credit card purchases
   • Redeem rewards points towards reducing mortgage principal

Learn about:

• Countrywide RewardsSM Credit Card
• Advantages of Countrywide RewardsSM Credit Card
• Lowering your Countrywide Mortgage Principal