In today’s American life, credit or a debit card have become a necessity. These plastic cards offer convenience, security and easy expense tracking. Good news is that you can earn free money/ rewards by using these credit cards, which you were going to use anyway.

Kinds of Rewards

Cash:

I personally like this award the most. With cash rewards, you can do anything with the money and are not stuck to a specific store, specific kind of merchandise or have to travel to use the award. A credit card that offers cash back usually rewards cash as a percentage of purchases made using the credit card. For example, you might receive 1% cash reward for each $1 you charge. Cash can also be rewarded in specific increments once you charge a certain amount of money, like a $25 reward when you charge $2,500.

Store/Merchandise Awards:

The points reward system offers a certain number of points per $1 of purchases. These points can be redeemed for merchandise and gift certificates for specific stores like best buy, gap stores, etc. The credit card may place limits on the vendors with which rewards can be redeemed. Rewards in the form of discounts on good and services are also available.

Travel Awards:

Some credit cards reward you with airline miles that can be redeemed for airline tickets. The amount of miles rewarded varies by credit card. Similarly, the number of miles needed to purchase a flight varies by airline.

Choosing a Reward Credit Card

Before ewe go into the steps in choosing the right reward credit cards, always remember that you are receiving an award based on the % of your spending. Therefore do not get into the trap of trying to earn more awards by spending more!!

Credit card rewards are only beneficial if you will actually use the rewards. If you never fly, having a credit card that rewards you with airline miles is virtually useless. The first thing you should consider when choosing a reward credit card is how useful the rewards will be.

If the credit card rewards you with points that can be used at certain vendors, make sure you first shop at those vendors before applying for the credit card.

Cash back rewards are the most universal. When you consider a credit card that offers cash back rewards, find out how the rewards are redeemed. Some credit cards give rewards in the form of a check, while others credit the rewards to your account.

The cost of the credit card is another factor that you should consider. If the credit card has a high interest rate, annual fee, or other associated costs, weigh those costs against the reward benefits you will receive. Avoid cards that cost more than they benefit.

Choose a reward card that allows you to accumulate an unlimited amount of rewards that never expire. You could end up forfeiting some or all of your rewards, if the credit card places limits on the amount of rewards you can receive or the length of time you can use them.

Last and a very important aspect in this selection process is to review users comments and feedback for the credit card company. Surf the internet to find the issues, concerns for the credit card company.

The Final Decision

Credit card rewards are excellent incentives for using your credit card. Before you make a final decision on a credit card, make sure you fully understand the reward program, how rewards are accumulated and any restrictions that apply to redemption of the rewards.

Once you obtain a rewards credit card, it’s important that you use it wisely.

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