How to Find the Perfect Rewards Card |
 |
by: Janna Weiss
It's sad but true: some reward cards just aren't as rewarding as they used to be. Take airline reward cards, for example. Airlines are scaling back their frequent flyer programs. Those seat upgrades, free flights and other perks are getting harder to redeem - and they cost more points then ever before. Do you really want to spend your time and money on a reward card that doesn't give you what you want?
To find your perfect credit card, you must first ask yourself a few questions. Are you a frequent traveler? If so, many cards offer rewards above and beyond airline incentives. Look for cards that offer points and discounts you can apply to rental cars and hotel rooms. Those services haven't lost as much value as frequent flyer programs.
Another question to ask yourself is whether or not you're the kind of card holder who pays their balance in full every month. If so, you could benefit from reward cards. If you tend to carry a balance from month to month, you'll be better off finding a low-interest credit card to make your purchases with. Reward cards tend to come with higher interest rates.
Do you want a reward card with lasting value? Try one that offers cash-back rewards. They retain their value better than cards that offer points whose value can change at the whim of the card issuer. Also, cash can be used anywhere, while reward points are limited to certain types of goods and services. Look for cash-back reward cards that offer 2-5% cash back on common purchases. Avoid ones that offer 1% cash back across the board. You can find a better deal.
Do you charge a little or a lot on your credit cards each year? If you’re a frequent charger, you can benefit from a card like the American Express Blue Cash Card. If you use your credit cards for small, infrequent purchases, you might do better with the Chase Visa Signature Card.
Whatever your spending style, look for reward cards with reasonable interest rates, keeping in mind that they do tend to be higher than regular cards’ rates. Decline cards that charge an annual fee. And don’t get snared by temporary introductory offers. Be sure to read your credit card agreement thoroughly before you sign the contract. What looks good at first might turn into a nightmare down the road.
Need help choosing the perfect reward card? Take a look at our collection of the most popular reward cards organized by type.
|
Did you find this article helpful? |
| 
