Are rewards credit cards the same as cash back rewards?

Whether you’re earning cash back or points on the purchases you make, a rewards credit card can offer perks to take advantage of. And while credit cards with points or cash back rewards have similarities, they aren’t always created or handled equally.

Is cash back the same as reward points?

Cash back is not the same as reward points; while the former translates into a corresponding dollar amount, the latter does not. For instance, a 2% cash back card offers $2 cash back for every $100 you spend.

Are cash back cards better than points cards?

Cash back cards offer simple rewards that are as good as cash and easy to redeem. Meanwhile, points cards have more nuance to earn and redeem your rewards, but you can potentially get more value from them. We break down the two card types and recommend the best cash back and points cards to help you find the best option for your wallet.