Credit cards can offer a wide range of rewards. Companies offer everything from cashback to airline miles. Two kinds of reward cards stand out from the rest: airline and store cards. These cards are offered by brands you know and love. Both kinds of cards can be highly rewarding if used correctly. 

Credit Cards for Travelling 

Travel cards let you gain airline miles for every dollar you spend. You can then use those miles to pay for flights and travel. A downside is that, in most cases, you can’t use your rewards for anything else. That means travel cards are best if you travel a lot.  

Are Airline Credit Cards Worth It? 

It really depends on who you are. If you travel a lot and have a favorite airline, their credit card could be a good value. Some things to consider are: 

• Welcome bonuses: Some airline cards give you bonus miles when you sign up. The intro bonus could even earn you a free trip. 
• Elite status boost: Many airlines give you a head start on status upgrades if you have their card. Status unlocks perks like airport lounge access, free checked bags, earning more miles, complimentary upgrades, and even discounts on hotels and rental cars.  
• Lack of options: You can usually only use your rewards with the airline or its partners. Airlines can also have policies that don’t let you use your miles on specific dates. 
• Risk of changes: Airlines can always change their programs. They could make your miles worth far less at a moment’s notice. 
• Annual fees: Most airline credit cards come with an annual fee. It’s worth considering if you’ll save enough to offset the cost. 

It’s important to note that getting a new card can temporarily lower your credit scores. It can also negatively affect your credit score by lowering the average of your accounts.  

What Credit Score is Needed for an Airline Credit Card? 

According to Experian, cards with the best rewards are usually intended for people with established credit. That’s why most airline cards require a score of 670 or more. If you have a lower credit score, you might be able to get other travel credit cards. But their rewards may not be as good, or there could be fewer of them. That said, there usually isn’t a strict minimum credit score. The credit card company will look into your credit limit, income, and history with them when deciding your application.  

Store Cards: Credit Cards for Clothes 

Another popular type of credit card is a store rewards card. These cards typically give you a huge discount when you open your card. That means something like a Nordstrom Card could help you if you do a lot of clothes shopping. Unfortunately, like travel cards, store cards only let you spend points at that store.  

Are Clothing Store Credit Cards Worth It? 

Although the intro discount is tempting, clothing store credit cards are usually not worth it. The reward rates on these cards are typically much lower than those on airline credit cards or even cashback cards. They also lock you into dealing with that specific brand. Some cards only let you earn and use points at their stores.  

So, it might not be a good idea to get a store card if you only go once a year. To make it even worse, store cards often have higher-than-average interest rates. They can even have annual fees, which may outweigh potential savings. 

Is It Hard to Get a Store Credit Card? 

One upside of store credit cards is that they are usually easier to get. For example, the lowest score to get a Target credit card is only 640 compared to the 670 or more required for airline cards and more general rewards cards.  

The Bottom Line 

Rewards cards come in many different shapes. Depending on how you spend, they can save you money. Airline cards are best if you travel with a specific airline a lot. Store cards reward you at stores you go to often. However, neither credit card provides much flexibility in what your points can be used for. They can also come with higher interest rates than traditional credit cards, making them harder to pay off if you maintain a balance.  

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