Finding the Best Reward Cards
The best one may not be the one you
think!
Reward credit cards come in a variety of
forms. Specifically how points toward rewards are earned and
the types of rewards that can be earned with a reward credit
card varies from card to card.
The rewards offered by reward credit cards are generally
related to a special area. For example, some reward credit
cards allow cardholders to earn points when making purchases at
gas station, supermarkets, or drugstores. The rewards earned
are often related to this in some way, such as the cardholder
may receive gift certificates to the same types of stores.
Similarly, the reward credit card may be related to airline
travel. Every time the cardholder makes purchases with a
specific airline, he or she earns airline miles or free travel.
In addition, these airline reward credit cards also generally
offer the cardholder free companion tickets.
When it comes to choosing the best reward credit cards, the
consumer needs to assess his or her lifestyle and determine
which rewards are most attractive - and most profitable - for
his or her needs. A reward credit card that provides
specialized rewards, such as gift certificates to a specific
restaurant, may not be useful to a cardholder that does not
have a need for that reward.
Reward credit cards can provide credit cardholders with
fantastic rewards for their purchases. At the same time, the
consumer needs to be sure he or she isn't actually paying for
the reward in the form of finance charges and annual fees. Many
reward credit cards assess an annual fee. If this annual fee
costs more than it would cost to simply purchase the reward, it
is certainly not worth paying for.
The same holds true when looking at the APR. A cardholder who
pays the balance of his or her credit card in full each month
need not worry about the APR. One that intends to carry a
balance from billing cycle to billing cycle, however, must
consider the amount of money that will be spent in the form of
finance charges. Once again, if the finance charges will be too
great, the rewards of the credit card are not really rewards -
they are items the cardholder is paying for.
Several reward credit cards have expiration dates. For those
cardholders that will not be able to collect enough reward
points before they expire, these reward credit cards may not be
the best option. Similarly, some reward credit cards have
limitations to how many points can be acquired each year.
Cardholders need to consider these limitations in order to
ensure they are receiving the greatest amount of rewards
possible. If a cardholder spends $15,000 per year on a credit
card, but a rewards credit card only rewards up to the first
$10,000, that is $5,000 that is going unrewarded. The answer
may be to select a different reward credit card, or to simply
stop spending on this particular credit card once the limit has
been reached. After all, every dollar spent on a credit card
deserves to be rewarded.
A good place for consumers to look for the best reward credit
cards is at the businesses they frequent. For example, a
consumer that routinely purchases gas from a specific type of
gas station should enquire with that business to learn if it
has a rewards credit card. The same is true for a consumer that
frequents certain restaurants, stores, and airlines. It is
becoming increasingly commonplace for businesses to pair up
with major credit cards to offer special reward cards.
About the Author:
Will Roberts
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