There are many different credit cards out there, and consumers have a seemingly infinite array of payment choices. Banks know this, and so many banks offer rewards for using their credit cards. Banks and other financial institutions want their card to be at the top of your wallet, and they offer incentives to keep it there.
The world of credit card rewards
There are three main types of credit card rewards that you might take advantage of when using a card to make purchases.
- Signup bonus — Many cards offer an initial welcome offer for opening and being approved for a new card. You might get 60,000 airline miles after spending $3,000 in the first 90 days of having the card.
- Rewards for ongoing purchases — In addition, you’ll earn rewards for each of your purchases. Some cards offer a specific amount for all purchases, while others give higher rewards