Credit card rewards, defined
Every time you pay with your card you earn a small return on what you spend. Depending on the card, that comes back to you as cash off your bill, points you can redeem, or miles toward travel.
There are four common types of reward cards:
| Reward type | How it works | Best for |
| Cashback | Earn a fixed percentage back on spending (e.g., 2% back). Simple and straightforward with no complex conversions. | Users who want simplicity and statement credits to reduce their bills. |
| Travel Miles | Earn miles for every purchase, which can be redeemed for flights, hotel stays, and upgrades. | Frequent travelers looking to cover travel expenses or secure premium cabin flights. |
| Flexible Points | Earn points that can be redeemed for cash, gift cards, or transferred to airline/hotel partners. | Optimizers willing to learn transfer partners to extract maximum value per point. |
| Stores/supermarket cards | Earn retailer-specific points, vouchers or discounts when you spend. | Regular shoppers who spend frequently with the same retailer or supermarket. |
How to accumulate credit card points & cashback
Building a strong rewards balance comes down to matching your spending habits to the right card. Broadly, cards earn in one of two ways. Some pay the same rate on everything you buy, sometimes called flat-rate cards, so you earn the same return on gas, groceries, or a flight. Others pay a higher rate in set categories such as groceries, dining, or travel, and a lower rate on everything else. Which one earns you more depends on where your spending already goes.
- Pay your balance in full every month: A card you clear each month can earn rewards without interest reducing their value.
- Take advantage of promotions as they come up: Issuers and merchants run limited-time offers such as elevated categories, partner bonuses, and targeted spend campaigns.
- Keep a big purchase from breaking the habit: A large expense can make it harder to clear your balance in full that month, and interest can quickly outweigh the value of the rewards you earn. Planning a big purchase in advance can help you understand how it will fit into your budget before you reach the checkout.
Tips for maximizing rewards on large purchases
- Check for relevant promotions: Some card issuers run offers that pay extra points or rewards once you meet certain spending conditions. Before making a large purchase, check whether your existing card has a relevant promotion or bonus offer.
- Check your credit limit: A large purchase can use a significant proportion of your available credit. Check your limit before you buy and consider how much credit you will have left for other spending.
- Pay in installments: If you have the available credit but don’t want the full balance to land on a single statement, use Splitit to split the purchase into fixed monthly payments on your existing card. Splitit charges your card each month, and you keep earning your rewards as normal.
How installments affect your rewards earning
With Splitit, each installment is charged to your existing credit card, so eligible rewards can be earned as those installment charges post. The points, miles, cashback or category bonuses you receive will continue the same way as any other credit card purchase.