These credit cards offer bonus points or cash back on streaming services

Americans rely more on streaming for their entertainment needs than traditional television, according to a report by Horowitz Research.

With streaming becoming more of a mainstay in the typical household budget, credit card rewards for streaming services offer the chance to earn bonus rewards on popular services.

How rewards credit cards work

Credit card rewards can provide an excellent way to get some value back when you make purchases. Depending on the card, you can use these rewards to get cash back, book travel, buy gift cards and merchandise and more.

The structure of a credit card’s rewards program can vary, but many cards offer extra cash back, points or miles when you make everyday purchases in select categories. As streaming services become more popular, more and more credit card issuers are offering credit card rewards for streaming services as bonus categories.

HOW CREDIT CARD REWARDS CAN HELP PAY FOR GROCERIES, OTHER ITEMS

So whether you’re using Netflix, Spotify, Amazon Prime, Hulu or any of the other countless streaming services, having the right credit card can help you maximize the value you get back on those purchases.

One of the top credit cards for streaming, for instance, is the Blue Cash Preferred Card from American Express. It offers a whopping 6 percent cash back on select U.S. streaming services, which is effectively a nice discount when you get the rewards in the form of a statement credit.

The pros and cons of getting a rewards credit card

If you’re thinking about getting a new credit card, it’s important to compare multiple card options before you apply. Visit Credible to view some of the top rewards credit cards based on your preferences and pick the best one for you.

CASHBACK CREDIT CARD VS. REWARDS: WHICH IS BETTER?

Also, if you already have a rewards credit card, look to see if you can cash in on your rewards for some “free money.”

Credit card rewards can be a great way to capitalize on everyday purchases you’re going to make anyway. However, there are also some potential downsides you should be aware of.

The main benefit of a rewards card is that you can get value back every time you use your card, and as long as you pay your bill on time and in full every month, you’ll never pay a dime in interest.

HOW YOU CAN FIND THE BEST CREDIT CARD REWARDS

On the flip side, credit cards have relatively high interest rates. So if you don’t pay your bill in full every month, you may end up paying more in interest than you’re getting back in rewards. If you end up racking up a lot of debt, it could threaten your financial well-being and hurt your credit score.

Also, while not all rewards cards charge annual fees, many of them do, including the AmEx's Blue Cash Preferred Card, which charges $95 each year. These annual fees aren’t inherently bad, especially if you can get enough value to make up for them. But for casual credit card users, it may not be worth the trouble.

Likewise, credit cards charge other fees that could eat into the value of your rewards. However, you can avoid many of them by paying your bill on time every month and avoiding things like cash advances and balance transfers.

Other rewards credit card perks

With many credit cards, rewards get all the fanfare, but some cards may also offer additional perks that can add even more value to your shopping experience.

For example, many major credit cards come with insurance protections that can help you if you’re renting a car, traveling or even making purchases. If you get a card that’s geared toward travel, you may get special perks that can save you time and money when you’re traveling.

ARE CREDIT CARD REWARDS TAXABLE INCOME?

Finally, many cash back credit cards offer introductory zero percent APR promotions that allow you to make purchases or transfer a balance and pay it off interest-free for a set period. As you shop around and compare different cards, look beyond the rewards programs to get a full view of what each card has to offer.

If you’d like to take full advantage of rewards credit cards but are stuck in credit card debt, work to pay down your current balances before you start using credit cards again. If making even the minimum payments is challenging, consider speaking with your card issuer to see what your options are, or consult with a credit counselor, who may be able to help you with your debt situation.