Credit card rewards are basically incentives for using a particular brand of card and keeping your score up.
Finding the best reward card for you has a lot to do with how you spend your money, whether you need frequent flyer miles or just cash back on your purchases. Thankfully, credit card companies have a variety of rewards to choose from so you can find what’s best for you.
Credit card rewards are basically incentives for using a particular brand of card and keeping your score up. Finding the best reward card for you has a lot to do with how you spend your money, whether you need frequent flyer miles or just cash back on your purchases. Thankfully, credit card companies have a variety of rewards to choose from so you can find what’s best for you.
Cash Back Rewards
The more you use the card, the more money you get back. While it sounds almost too good to be true, it’s actually feasible. Excluding interest and fees, most cards offer one percent cash back on any purchase, which can certainly add up over time. Some cards come with extra benefits [1], like offering more percentage back the more you use the card or more percentage when buying particular brands.
Money doesn’t usually just come for free, which includes this case. Cash back programs are costly, and some cards resort to annual fees on the cards. Still, they can be useful and accrue a lot of money over time. The owner just has to stay on top of payments each month to pay off the balance.
Travel Rewards
A lot of credit cards go into their own subset of offering deals on hotels and traveling cost [2]. These cards earn points on any purchase as well as bonus points on stays in a certain hotel chain, using a certain airline, etc. For people who travel a lot, especially those who work in business, these types of rewards are ideal for saving and even earning money.
Most of the time, these cards don’t offer cash back rewards. Instead, you can get free nights or upgrades at hotel chains or extra miles on an airline. Some allow owners to redeem points for theme park admissions. These cards also usually come with an annual fee and aren’t really worth the hassle if you’re not a frequent traveler.
Retail Rewards
Almost every retailer is starting to pick up their own credit card now, including Amazon. These cards earn points with purchases through them but also double or triple points for buying certain brands. These are not cash back and are only good enough to redeem on in-store products or services of the retailer. Always keep these cards paid off as their interest rates are often high.
Gas Rewards
There are two types of gas cards [3]. General gas cards work with any gas company while brand-specific gas cards favor just one company. General gas cards offer 1 percent cash back for any purchase but 5 percent for gas or auto maintenance. Brand-specific cards work similarly but only when buying gas through that company’s station, though still offering the 1 percent for regular purchases. Picking between the two entirely depends on how you get gas, but if you’re prone to long road trips, a brand-specific one may not be the best idea.
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Before You Buy
Every card has different standards for qualifying before you’re accepted. The biggest contributor is your credit score. For reward cards like these, you’ll need your credit score to be reasonably good, at least above 690, before really considering these types of cards. Of course, credit scores aren’t the only obstacle. You’ll want to consider each cards’ sign up bonuses, so shopping around will also do some good. Regardless, if you can get a rewards card, you may want to seriously consider it.
