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 and 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 and .

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

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

Comenity Bank issues both the and .

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 , those extra points are earned at Toyota dealerships only. With the , 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 , for instance, earns 2% in actual cash back on all qualifying purchases, plus a much more impressive sign-up bonus: 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 ) and Lexus dealerships (for the ). 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 and the have the same interest rate: . 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 , for example, can offer a lengthy break on interest charges for a planned purchase like a car repair. It has an introductory offer:

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 and are decent, but cash-back cards offer more upfront. Travel rewards cards give you much more redemption flexibility and bigger sign-up bonuses.