Rewards Credit Card
A credit card that offers points, miles, or cash back on purchases. Rewards cards typically require good to excellent credit (670+). The value of rewards is only realized if you pay your balance in full each month — interest charges will quickly outweigh any rewards earned on a carried balance.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Annual Fee
A yearly charge for holding a credit card, regardless of use. Premium rewards cards (with travel benefits, cash back, etc.) often charge annual fees ranging from $95 to $550+. Secured credit cards sometimes charge annual fees. Calculate whether the card's benefits exceed the fee before applying.
- Cash Back
A credit card reward where you earn a percentage of your spending back as cash (typically 1–5%). Cash back is the simplest rewards structure with no points conversion required. Most effective when the balance is paid in full each month to avoid interest charges that negate the cash back value.
Frequently Asked Questions About Rewards Credit Card
What does Rewards Credit Card mean?
A credit card that offers points, miles, or cash back on purchases. Rewards cards typically require good to excellent credit (670+). The value of rewards is only realized if you pay your balance in full each month — interest charges will quickly outweigh any rewards earned on a carried balance.
Is Rewards Credit Card important for my FICO® score?
Understanding Rewards Credit Card helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.