What's In This Article?
Rewards Credit Cards and Cash Back Credit Cards are the most popular with Boomers today. Because, if you’re spending money via a credit card, you might as well get something in return, right?
There are other types of credit cards to consider, such as those with a low-interest rate. But these are not nearly as popular as those with a reward program.
Generally speaking, reward credit cards award points for each dollar you spend. Over time, as you earn more points, you’ll be able to use them on everything from cashback to travel to home goods and much more.
What to Look for in Reward Credit Card
Due to the popularity of reward credit cards, there are more of these to choose from than you ever imagined possible. Many options are a good thing in the way that it allows you to find the one that best suits your financial situation. Conversely, it can complicate the process because you have to compare several offers before making a final decision.
Take time to review reward credit cards with patience. This process will lead you down the right path, allowing you to cross out offers that don’t suit you and learn more about those that could bring benefits to your life.
To speed up the comparison process and increase efficiency, here are five questions to answer:
How do you earn points?
The most basic of questions, you need to know how you earn points for using your credit card – no need to worry, though, as every credit card company has a system in place.
Most of the time, you will earn one point for each dollar you spend. With each statement, you will receive an update on the number of points earned as well as your total balance.
Tip: Will your points ever expire? Remember to ask this question.
Is it possible to earn more than one point per dollar spent?
This multipoint system is where some reward credit cards are different than others. Don’t be surprised if you find several that allow you to earn additional points.
For example, some reward credit cards award two points for every dollar spent at gas stations and grocery stores. If most of your purchases are for fuel and food, then this type of card is one of the best ways to speed up the process of collecting points.
What are the minimum points that are required before you can redeem them?
The answer depends on the reward program, but many start at 2,500 points. This means that once you have 2,500 points in your account, you have the opportunity to redeem them.
While you may be in a hurry to get something in return for your points, remember this: the more you save points, the more you can get. In other words, don’t expect to get a free night at a hotel or a free plane ticket for 2,500 points. It will take more than that.
What can you get with your points?
It does not do you any good to collect points if you are not able to use them for something you want.
Before you sign up for a reward credit card, learn more about what you can get when the time comes for redemption. Can you cash in your points for travel? What about cash? How about gift cards?
There is nothing more frustrating than signing up for a reward credit card, just to find that the points are not going to get you anything you want. Make sure you can really use and enjoy the rewards the card offers.
What other features and fees go along with the reward program? Who can use the points?
Don’t get so caught up in reward points that you overlook the other aspects of the credit card – Including but not limited to the interest rate, annual fee, and security features.
Tip: Are your points transferable to other family members, or is the primary cardholder the only one able to redeem the points?
You need to fully understand the details of what the credit card has to offer, even the details outside of the reward program.
Making Your Choice
Overall, reward credit cards have many benefits. Each one has a unique offer, and you should choose the one with the best benefit, so you are happy with what you get in return for the money you spend.
Be aware; no two offers are the same. This is why you need to be careful when making a final choice. You don’t need to regret a decision, as this could hold you back from using your credit card or force you into making another change in cards.
To speed up the process and lessen the likelihood of a mistake, use the research found on the internet to your advantage. It will help you with the following:
- Learning more about each reward credit card.
- Comparing every reward credit card that piques your interest.
- Applying for an offer once you find the one that suits you best.
Gone are the days of waiting for a reward credit card application to arrive by mail. You can speed up the process and improve efficiency by using the internet.
Other Types of Credit Cards
Interested in other types of credit cards? Check out these links for more information.
- Business Credit Cards
- Balance Transfer Credit Cards
- Points Rewards Credit Cards
- Gas Rewards Credit Cards
- Sports Rewards Credit Cards
There is a reason why reward credit cards are so popular. These give you something in return for the money you spend.
Even with this benefit, you don’t want to assume that all offers are the same. Instead, focus on the details above during the search and comparison process. The research you do will put you on the right path, allowing you to make a decision that suits you and your finances.