By Christopher
BillSavings.com Brief: One of the advantages of using credit cards are the numerous rewards. Credit card rewards range from cash back, to discounted merchandise. Other typical rewards include discounted air travel, hotel discounts, as well as gas rebates. However, the most important reward is having a card with a low interest rate.
While the best credit cards are those with the lowest interest rates, there are other benefits of using a credit card such as the variety of available reward programs. If you are looking for a new credit card, take the time to research the reward programs offered at major credit card companies. You may just find a card that offers exactly what you need including less expensive fuel, discounted airline tickets, and free merchandise. However, it is important to note that despite the initial claims of a credit card offer, there will more often than not be a catch such as requiring you to spend a certain amount or to redeem your rewards during a limited time of the year. This is why you need to read all of the small print before deciding upon a new reward based credit card. It is also important to note that each time you apply for a credit card your credit score is affected. If you are going to apply for a substantial loan such as a car or home loan, it is best to secure the loan first and then apply for the new card. Below are some of the most popular credit card rewards.
Airline miles
Airline tickets are often extremely expensive. Furthermore, due to the rising cost of fuel, many airlines have begun taking away perks, such as free beverages and blankets, while some airlines will even begin charging for carrying luggage. This is why airline miles are a very attractive reward when choosing a new credit card. However, before you sign up for the first card you see that offers airline miles, be sure to read the fine print. This is because many airline miles have restrictions such as when you can use them and on what airline. If you prefer a particular airline then by all means sign up for a card that has a relationship with your airline of choice. However, most consumers choose their airline tickets based on price rather than the company. If you are one of these consumers, it is best to sign up for a card that offers airline miles without as many restrictions.
Cash back
The more you spend, the more you receive with a cash back reward program. Of course, if the interest rate is extremely high you are better off searching for a card with a lower interest rate. However, with some cards that offer a 2% cash back program, you will receive a lower interest rate than most cards offer if you continue to use your card for purchases. Cash back comes in a variety of ways including using it towards paying off your balance, in the form of a check, or even a gift card, which can also make a great gift. Again, this kind of program is only for those credit card users that continually use their cards for purchases.
Discounted merchandise
If you love to shop at a specific retailer, consider choosing a credit card with specific reward programs geared toward that retailer. For example, if you spend a lot of your disposable income on books, choose credit card rewards offering that discounts at bookstores. The same applies for clothing, electronics, etc. However, if you can find a card that offers a low interest rate, choose that one over a card with a higher interest rate and discounted merchandise.
Gas rebates
Gas-rebate cards are a great way to save at the pump if you know how to use them. For example, many gas-rebate cards only work at specific filling stations, which is why it is best to choose a card that offers rebates at your neighborhood station. Again, be sure to read the fine print as most cards only offer significant savings during the introductory period. Once the period is over, consider switching to another card.
8/26/2008
