5 Things to Know About the Toyota Rewards and Lexus Pursuits Cards

If you’re dreaming of a shiny new car with a big red bow on it, certain credit cards can help take the edge off of the cost. The Toyota Rewards Visa® and Lexus Pursuits Visa® both offer a high earnings rate when you use them at Toyota and Lexus dealerships, respectively.

You can redeem points at dealerships, too. Add in extra cash back on dining and entertainment, and you have two cards that may be especially appealing if you plan to buy a new car or make significant repairs to the car you already own.

Here are five things to know about the Toyota Rewards Visa® and Lexus Pursuits Visa®.

» MORE: NerdWallet's best credit cards for car repairs

1. The two cards are similar, with one big difference

Comenity Bank issues both the Toyota Rewards Visa® and Lexus Pursuits Visa®.

The main difference, as their names imply, is that one card is focused on Toyota, while the other is aimed at Lexus.

Otherwise, you earn points much the same way:

• Earn 5 points per dollar at the dealership: With the Toyota Rewards Visa®, those extra points are earned at Toyota dealerships only. With the Lexus Pursuits Visa®, you’ll have to spend money at a Lexus dealership.

• Earn 2 points per dollar spent on gas, dining and entertainment.

• Earn 1 point per dollar everywhere else.

With either card, as of this writing, you can earn a sign-up bonus equal to $50 when you use it outside of its respective dealership partner within the first 90 days.

Those rewards are relatively modest compared with what a general rewards credit card can offer. The Wells Fargo Active Cash® Card, for instance, earns 2% in actual cash back on all qualifying purchases, plus a much more impressive sign-up bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. You could use this option to defray car-related purchases or other costs.

» MORE: 5 things to know about the MINI credit card

2. You can redeem points for a statement credit ...

Exchange your earnings for cash back in the form of a statement credit at a value of 1 cent per point.

You can also redeem for merchandise, gift cards or travel. These awards are governed by third-party companies, so the value of your points may vary and redemption terms may change without notice.

» MORE: 5 things to know about the BMW Card

3. ... or at a dealership

The ability to redeem for statement credits makes for two downright decent cash-back cards. But what really sets these cards apart is that you can redeem points to pay for service, parts and accessories at Toyota dealerships (for the Toyota Rewards Visa®) and Lexus dealerships (for the Lexus Pursuits Visa®). You can even cash in points toward a new car for any amounts due at signing. For redemptions at a dealership, points are valued at 1 cent apiece and there’s no minimum redemption amount.

4. You won't want to carry a balance

Both the Toyota Rewards Visa® and the Lexus Pursuits Visa® have the same interest rate: The ongoing APR is 18.74% - 32.74%, Variable. That's significant and will add up quickly if you don't pay the balance off in full each month. If you need to carry a balance, a credit card with low ongoing interest rate or an introductory 0% interest offer would be a better pick.

The aforementioned Wells Fargo Active Cash® Card, for example, can offer a lengthy break on interest charges for a planned purchase like a car repair. It has an introductory offer: 0% intro APR on Purchases for 12 months and 0% intro APR on Balance Transfers 12 months from account opening on qualifying balance transfers, and then the ongoing APR of 19.24%, 24.24%, or 29.24% Variable APR

5. Other rewards cards may offer you more

As with car buying, it can pay to shop around when looking for a new credit card. The rewards for the Toyota Rewards Visa® and Lexus Pursuits Visa® are decent, but cash-back cards offer more upfront. Travel rewards cards give you much more redemption flexibility and bigger sign-up bonuses.