Different Rewards Credit Cards Offer
You will find many different credit cards out there today. In an effort to get business, especially from the people with the best credit, they will often give certain rewards. It is useful to be knowledgeable about what is out there so that you can pick the right credit cards for you. The following are some of these programs.
Cash back
This is one of the more popular types of programs. Some credit cards give you cash back on your purchases. There work in very different ways.
The simplest cash back program gives you a straight percentage across the board. They may give you 1% back on all of your purchases for instance. Some other credit cards will give you cash back according to the category of product. For instance, they may give you 1% cash back at grocery stores, 3% cash back at home improvement stores, 5% cash back on gas and so forth. Some of them will have these categories stay static, whereas others will have them change.
Some of them will give you a percentage based on what you spend. You might get .5% cash back if you spend a certain amount and then it might go up when you spend more.
There are different limitations often put into these programs. First of all, many of them have a limit on the total dollar amount you can get in a year. It is important to be aware of that because they can range significantly. Others might only do it for a certain amount of time after you get the credit card. For others they might list the higher percentage on their advertisements (such as they will say “Earn up to 5% cash back”) but you will have to read through the fine print to find the real details. Make sure you learn all about it before choosing the offer that is right for you.
Miles
Some of the credit cards will give you airline miles for using the card. This can be useful for someone who flies a lot. These can often expire so make sure to read the details.
Points/gift program
Some credit cards will award you “points” for using their credit cards. You can then redeem these for prices such as gift certificates to certain stores.
You want to find the rewards credit card that is the best for you. Considering your purchases, you might want to put a dollar value on what you would get back from them and take the one that is the most lucrative. Consider the above types when making your decision.
Updated On: 09/08/2010 Published On: 09/08/2010 Article ViewerClose
Helium 360 – Money Matters 360
MONEY MATTERS PROJECT 20100901 – 20100930
How to Choose a Rewards Credit Card
by Suzanne Rose
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