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Credit card rewards programs can help turn everyday spending into valuable perks, whether that’s cash back rewards, travel miles, or flexible points. Many programs are available, so learn more to choose the right card to maximize your budget and get more out of every purchase.
Key Points
• Before selecting a rewards program, you should determine your primary goals, such as earning cash back or planning for a long flight.
• When evaluating a credit card, you should research details such as annual fees, sign-up bonuses, and extended warranties.
• Before applying for a credit card, it is important to understand your likelihood of being approved.
• You should calculate the value of your points to ensure you get at least a 1:1 value, which equates to one penny per point or mile.
• To benefit from credit card rewards, you should always pay your balance on time and in full.
What Are Credit Card Rewards?
Credit card rewards are benefits that you can earn when you make purchases with a rewards credit card. Credit card rewards are similar to membership rewards, which offer various benefits to customers who engage with certain products and services.
For every dollar you spend with your credit card, you will earn rewards, which are typically cash back, points, or travel miles. Some cards let you redeem your rewards for checks, statement credit, travel perks, gift cards, and/or merchandise purchased through the card company.
Types of Credit Card Reward Programs
There are three main types of credit card rewards programs: cash back rewards, points, and travel miles.
With cash back rewards, you earn a percentage of cash back on each eligible purchase you make with the card. Some cash back rewards cards earn a flat rate on all purchases, while others offer higher rates for bonus categories of spend or for rotating categories.
SoFi has two credit cards that offer cash back rewards. The SoFi Unlimited 2% Credit Card gives you unlimited 2% cash back rewards on all eligible purchases with no annual fee. The SoFi Everyday Cash Rewards card gives you 3% cash back rewards on dining, 2% on groceries, and 1% on all other eligible purchases, with no annual fee. To explore the annual fee of the SoFi Unlimited 2% Credit Card, see pricing, terms, and conditions.
Through points-based credit card reward programs, cardholders are able to earn reward points on their purchases. The value of the points will vary depending on the program and how you redeem the points. Some programs will let you redeem points for travel, gift cards, cash back, merchandise, concerts, sporting events, or statement credits.
Credit card reward programs that earn miles are typically co-branded airline credit cards. These cards earn miles for every dollar you spend with the credit card. You can then redeem miles for flights, seat upgrades, or other travel-related expenses.
Benefits of Credit Card Reward Programs
Credit card rewards programs can give you a way to take advantage of money that you are already spending by earning cash back, travel experiences, or merchandise on your everyday purchases. If you use your card responsibly and choose the right credit card program for you, you can earn more value than you spend on the card’s annual fee.
How to Choose a Credit Card Rewards Program
When choosing a credit card rewards program, you should figure out what your goals are. Do you want to earn cash back for your purchases? Do you have a trip in mind that involves a long flight? This will help you decide which type of rewards program would be best for your goals (like cash back, points, or miles).
You should also research other things about the credit card, like any annual fees, sign-up bonuses, travel protections, extended warranties, transfer partners, or other benefits. Weigh the pros and cons of the card for your specific wants and needs.
Before you apply for a credit card, you should understand your credit card approval odds. You don’t want to apply for a credit card that you definitely wouldn’t get approved for, due to your credit score or other factors.
You can do a free credit score check before applying. You can also sign up for credit score monitoring to get an understanding of what your credit score is.
You should also understand the difference between preapproval vs prequalify offers and how a soft vs. hard credit inquiry affects your credit score.
Credit Card Rewards Tips
Every credit card rewards program works a bit differently. The amount your rewards are worth can vary by program. Cash-back cards give you a percentage of your spending back, but cards that earn points or miles are not always a 1:1 conversion. The value can also vary depending on how you redeem the points or miles.
To ensure you are getting a good value for your points, you should try to get at least a 1:1 value, meaning one point or mile is worth one penny. To calculate this, take the cost of the redemption item (like a travel reservation) and divide it by how many points or miles are needed.
Different rewards programs also have different rules about redeeming rewards. Some programs require you to reach a minimum amount of rewards to be eligible to redeem them, like $25 or 2,500 points. Other card issuers let you redeem points at any amount. Most issuers also require you to keep your account open and in good standing to be eligible to redeem rewards. If you close your account or become delinquent, you will risk losing your rewards.
SoFi Plus Premium Membership Benefits
In addition to credit card rewards, some financial institutions offer premium banking services that provide extra perks and account benefits. For example, with SoFi Plus, you can get more than 20 perks and more than $1,000 in annual value with qualifying activities.
SoFi Plus members can earn 4.70% Annual Percentage Yield (APY) on up to $20,000 in a SoFi Bank savings account.
SoFi Plus members also get matching funds, including 1% of eligible deposits into non-retirement SoFi Invest accounts and 1% on crypto purchases.
SoFi Plus can give you additional rewards as well, including a 10% boost on cash back rewards when you earn reward points through select SoFi credit cards. You’ll also get 5% cash back rewards points on bookings through SoFi Travel (except for airfare) and 2x rewards points on qualifying account activity.
Additional discounts include a 50% discount on Hello Privacy, $200 off trusts with Trust & Will, 20% off TurboTax, a $50 Rakuten welcome bonus, and a discounted Care.com subscription.
You can save on fun experiences by being a SoFi Plus member through SoFi Plus experiences, exclusive chances to enjoy live entertainment. SoFi Plus membership includes a $20 reward on dining with Seated and 10% off tickets with Vivid Seats.
The SoFi Plus calculator can help you estimate the annual value you can earn with SoFi Plus.
Visit the SoFi Plus page for details on specific membership and promotional offerings.
The Takeaway
If you pay your credit card balance monthly, you can gain several advantages from credit card rewards programs. However, it is important to use your card responsibly: always pay your balance on time and in full, and don’t spend more than you would normally just to earn more rewards.
SoFi Plus is America’s most rewarding financial membership—all in one app.* Unlock extra savings, rewards, discounts, and more.
FAQ
What are the different types of credit card rewards?
The three main types of credit card rewards are cash back, points, and travel miles.
What is the 2/3/4 rule for credit cards?
The 2/3/4 rule is a Bank of America-originated policy for credit cards. It restricts how many new personal credit cards you can be approved for within certain time frames: two cards in 30 days, three cards in 12 months, and four cards in 24 months.
What is the #1 rule of credit card rewards?
The number one rule of credit card rewards is to always pay your credit card balance in full and on time.
What is the biggest mistake to avoid with credit card points?
The biggest mistake would be carrying a balance on your credit card. Interest rates on credit cards can be around 20% APR. If you carry a balance, you will erase any value that your credit card points provide.
Which credit card is best for cashback rewards for SoFi?
SoFi has two credit cards that offer cash back rewards. The SoFi Unlimited 2% Credit Card gives you unlimited 2% cash back rewards on all eligible purchases with no annual fee. The SoFi Everyday Cash Rewards Card can give you 3% cash back rewards on dining, 2% on groceries, and 1% on all other eligible purchases, with no annual fee.
Photo credit: iStock/Jacob Wackerhausen
This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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