While cash-back credit cards dominate discussions, alternatives like travel rewards credit cards are often overlooked. These cards can potentially offer more value through points accumulation, particularly for avid travelers. Despite cash-back cards providing straightforward "free" money, the potential benefits of non-cash-back options, such as lower interest rates, and higher rewards in specific categories, may make them appealing depending on the user's financial habits and interests. This shift in perspective encourages consumers to explore various credit card types beyond the popular cash-back offerings.
However, one Redditor posting in r/CreditCards asks an interesting question: What's the point of a non-cashback credit card? Taking this one step further, the Redditor questions why someone would consider reward points a good or even better alternative to "free" cash back.
Let's assume for a minute that you are someone who loves to travel above anything else you like to do with your disposable income. In this case, the idea that you can use a travel rewards credit card instead of a cash-back option means you earn points instead of cashback.
Depending on your card use, these points can add up quicker than cash back. For example, with the Capital One Quicksilver Card, you only earn 1.5% cash back on all purchases.
Non-cash-back credit cards also tend to have lower interest rates in case of a monthly balance.
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