(5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5)
(4.80 out of 5) (4.67 out of 5) (4.50 out of 5)Credit card and finance computations can make your head spin, we have developed common calculators to assist you.
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"Credit card brand" refers to the logo on the credit card, such as Visa... ...more
Did you know that you can actually make money by using your credit cards? Most credit cards have rewards programs that allow you to earn points and rewards simply for spending money. If you are going to use credit cards, make sure they are reward credit cards so that you can earn these incentives… read more.
Types of Reward Credit Cards
If you can imagine it, it is probably a reward for some credit card. The reward credit cards are as varied as the consumers that use them. You can even find rewards cards that earn rewards points that are converted into cash to be donated to a favorite charity.
That being said, there are certain types of rewards cards that are more common than others. One of these is an airline miles card. Airline miles credit cards allow their users to earn miles every time they use the card. These miles eventually translate into free airline travel.
Another type of reward credit card is a cash back card. These cards allow their users to earn a cash rebate each year that equals a certain percent of all purchases. This percent is typically quite low, as low as one percent.
Some rewards credit cards give their users points for purchases. These points are redeemable for a variety of items, from merchandise to gift cards.
Many rewards credit cards are variations of these. For instance, some cards allow their users to earn double points or cash back percentages for purchases made in select locations. A card aimed at a business owner, for instance, may double rewards points when used in an office supply store.
Considerations When Shopping for a Reward Credit Card
If you are in the market for a new credit card, why not make it a rewards card? This way you can earn money or points every time you use the card. If you are looking for reward credit cards, be sure to keep these things in mind.
First, make sure you are not inadvertently paying for your rewards. A reward card is not worthwhile if the interest rate is substantially more on the card than on similar, non-reward cards. Also, make sure there is not an annual fee. Remember, credit card companies are in business to make money, and while they may want to reward their loyal customers, they are not going to do so at a great expense to themselves, so do your homework before applying for a card.
Second, make sure you choose a reward that has benefits that are useful to you. A gas rebate card, which is a card that allows you to earn a percentage back on all of your gasoline purchases, may not be useful if you rarely travel out of your own town. You will earn few rebates on this card, since you will not be filling up your care very often. You may be better off with a generic cash back card that allows you to earn on every purchase that you make.
Finally, do not forget to cash in your rewards. Some rewards, like points systems that are redeemable for merchandise, do eventually expire. As such, make sure that you redeem your rewards each year. After all, you earned those points, so you might as well get something for them!
