This content is sponsored by PenFed Credit Union, federally insured by NCUA.
Choosing the best credit card for you can be overwhelming. There are so many options to choose from that offer many different benefits.
As you cruise through the summer, it’s wise to consider rewards credit cards that can help you as you hit the road, visit the beach or enjoy a night out with friends or family, according to the experts at PenFed Credit Union. Since there are several types of rewards cards, it’s important to choose the one that best suits your spending habits.
“Remember to think about your financial habits. Consider how often and what you buy, whether you pay off your credit cards every billing cycle, and how good you are at tracking and using your rewards and bonus offers,” PenFed Credit Union’s experts said.
Depending on the amount you spend as a new cardholder, travel rewards credit cards typically offer up front bonus offers in the form of points, that can often be redeemed for travel, including hotels and car rentals. The value of your rewards generally ends up being a percentage of your purchases, typically ranging from one to three percent.
“While a standard credit card can be used to help you pay bills or make purchases when funds are tight, the right rewards card can be a tool to help you reach your financial goals,” PenFed Credit Union’s experts said.
One reward credit card option is a points rewards credit card, which awards you points for purchases. You can then use those points to buy merchandise, travel, or purchase gift cards to select vendors.
“With this type of card, the number of points earned can vary by spend category, so pay attention to which cards give you the most value for the categories where you spend most. For greater purchasing power, look at cards that offer 2, 3, or even more points for every dollar you spend,” PenFed Credit Union’s experts said.
You can earn points with a PenFed Platinum Rewards Visa Signature® Card. This card also helps you out on road trips, with five times the points on gas paid at the pump and EV charging stations and 3x points at restaurants and grocery stores¹ (including most Target and Walmart locations²).
Travel reward credit cards could be a good option for frequent travelers. These cards allow you to earn points or miles. You can then use them to pay for travel-related expenses such as flights, hotels, rental cars, and more.
“If you travel frequently, for business, pleasure, or both, this type of card could be a great fit for you,” PenFed’s experts said. Also, look for a card that offers discounts or two-for-one deals on travel-related costs.
PenFed Pathfinder® Rewards Visa Signature® Card offers three times the points on all travel categories as well as other travel benefits such as $100 global entry or $85 TSA Pre-check statement credit and complimentary priority pass airport lounge annual membership³.
Cash back rewards credit cards are often the most straightforward, offering a certain percentage of purchases as cash back that can be applied to your credit card statement balance, or deposited in your bank account for future purchases.
“This type of card may be right for you if you want to effectively earn cash rewards every time you make a purchase,” PenFed said. “If you’re a saver or investor, look for a card that automatically deposits your ‘cash back’ into your bank account so you can build future wealth just by making everyday purchases.”
You can get 1.5% cash back³ on everyday purchases with a PenFed Power Cash Rewards Visa Signature® Card. You can put that cash toward your adventures this summer – whether that’s at restaurants with friends, on a road trip to visit grandparents, or getting ingredients to grill out with your family.
When making a decision about which reward credit card is best for you, consider your financial habits, where you’re making the most purchases, and the type of rewards you prefer to earn PenFed said.
“Consider how often and what you buy, whether you pay off your credit cards every billing cycle, and how good you are at tracking and using your rewards and bonus offers,” PenFed said. “Next, understand which cards you qualify for based on your credit score and take a look at the fees, benefits, rewards structure, and restrictions, and choose the one that best aligns with your habits and goals.”
PenFed Credit Union is federally insured by NCUA.
- Rewards are available only for new purchases made with the card: cash advances, checks drawn from the account, and balance transfers are excluded and do not earn credit toward rewards. Certain restrictions may apply. Visa® USA determines which transactions are classified as gas purchases paid at the pump and supermarket purchases based on Merchant Category Codes. Military commissaries are supermarkets. Fuel purchases for airplanes and boats receive 1 point per dollar spent. Your card account must be open and in good standing to earn rewards
- The listed merchants are in no way affiliated with Pentagon Federal Credit Union, nor are the listed merchants considered sponsors or co-sponsors of the rewards program. All trademarks are the property of their respective owners.
- Cash advances, credit card checks, and balance transfers are excluded from earning rewards.
