Rewards credit cards offer distinct advantages over traditional credit cards in the form of cashback, points, miles, and other various incentives for your everyday spending. While many cardholders focus solely on APR, annual fees, or balance transfer offers, there are many positives that come with signing up for a rewards credit card. This article will explore the top 5 credit card rewards and how you can make the most of them.

1. Cashback: Cashback rewards are some of the most popular credit card rewards, and for good reason. By shopping through card issuers’ online portals, using cards with cashback rewards, cardholders can get a percentage back of each purchase made, making essential items like groceries or gas a little bit cheaper. Many cards offer higher cashback rates on certain categories for even bigger savings.

2. Points: Most rewards cards offer credit cardholders an opportunity to rack up points, either by direct transfer to a specific airline or hotel chain or through one of the issuers’ rewards programs. Points can be used for a variety of things, including more travel opportunities, merchandise, and gift cards.

3. Miles: There are many factors to consider when comparing miles reward programs, so it’s important to understand the travel needs of your household and how the card's miles program fits in with them. Credit card miles programs typically offer users an easier way to rack up frequent flyer miles, and many programs even offer bonuses or discounts for booking travel with the card.

4. Sign-up Bonuses: Many rewards credit cards offer a sign-up bonus in the form of statement credits, points, or miles for new cardholders. These bonuses make it easier to rack up rewards quickly, and often come with an introductory period featuring a 0% APR or other attractive terms.

5. Shopping and Dining: Credit cards of any type, including rewards cards, often offer exclusive discounts and rewards for shopping or dining with certain merchants. These perks can range from free parking, to discounts on items or services, to cashback rewards that can be used in the store.

Ultimately, the right credit card rewards program depends on the individual or household. Doing a bit of research and figuring out what works best for you can really pay off. The top 5 rewards programs are all beneficial in their own manner, and by understanding their differences and using them to maximize your spending, you can take full advantage of the benefits a rewards credit card has to offer.