What Credit Card Rewards are the Best?
Credit cards that come with rewards are pretty much the “norm” nowadays. Folks know that with so many different options on the market, they can basically pick and choose the cards that they want. And because of this, most credit card companies compete with one another to entice you to do business with them.
Estimates hold that more than eighty percent of all credit card offers now feature a rewards program as one of the “perks” of being a cardholder. Perks can range from the standard cash back offers to airline miles and more. In fact, some cards are even offering to make contributions to the cardholder’s IRA as a reward.
Weighing the Available Rewards
Not all rewards cards are worth looking at, however. Some may require you to charge a particular amount to even qualify for a small reward. Others may put a cap on the number of points that you can get or they may make the window of time that is available for redeeming your points very insignificant and narrow, and if you fail to redeem your points during that time, you lose them altogether. A number of different rewards credit cards now charge annual fees, although they may waive the fee for the first year that you are a cardholder. Nonetheless, not all of them are bad. There are many good rewards credit cards out there; you just have to know where to look and what to look for. You should ultimately choose a rewards credit card that rewards you with incentives that you can actually use, based on your particular lifestyle and your shopping habits. The two most common rewards credit cards are travel and cash back rewards cards.
Travel Reward Cards
If you travel, there are a number of great options out there for rewards cards that allow you to earn rewards for doing what you love best – traveling! For example, the American Express Premiere Rewards Gold credit card is a great card that gives you three points for every dollar that you spend on airfare, two points for every dollar spent on gasoline purchases and grocery purchases, and one point for each dollar you spend on other purchases. Another good travel rewards card is the Capitol One Venture Rewards card. This card allows you to earn two miles for every dollar you spend, and it also gives you 10K bonus miles for spending $1K within the first three months of becoming a cardholder. The interest rate on this card is 13.9%, and you can redeem your points for airfare, hotel accommodations, or merchandise. You can also opt to have a credit issued on your credit card account to bring down your balance.
Cash Back Rewards Cards
Some people like to get cash back instead of rewards of any other type, since cash allows them to basically choose their
own reward, or even put the money into savings.
Another cash back card worth looking into is American Express’ Blue Cash card. The card offers great cash back rewards on groceries,
gas, and more.
Are Rewards Credit Cards for Everyone?
The variety of rewards that can be offered with a rewards credit card can vary widely, but rewards credit cards are not for everyone. For example, if you are a person who carries a balance on your credit cards, then you may get a better “deal” by going for a credit card that has a low interest rate. After all, the rewards that you earn will be negated by the interest that you will pay if you run a high balance. In instances like these, it may be a better option to find a card with lesser interest rates, or to seek out a rewards credit card that has a low interest rate to begin with.
Updated: January, 14 2012