Rewards Credit Cards
Rewards Credit Cards – credit cards offer great incentives to spend money you would normally do anyway, but it’s essential that you manage them wisely.
If you don’t pay off the balance in full each month, interest and fees can reduce the value of your rewards. That’s why it’s best to select a card that won’t break your budget.
Points
Credit cards provide rewards points that can be redeemed for travel, gift cards or cash. The rate at which these points are earned varies between cards, so make sure to select one that best fits your spending habits.
For instance, if you spend a lot on gas and groceries each month, look for a credit card that rewards those purchases as well as others. Some cards even provide accelerated earning in certain categories like online purchases with certain retailers.
You may want to consider getting a credit card with an affordable spending requirement. Most cards require that you fulfill a minimum spending requirement within the first few months of opening your account in order to earn bonus miles, points or cash back.
Finding the ideal credit card can be intimidating, particularly if you’re new to this world of rewards and credit cards. To find your ideal card, make a list of all your spending and identify which categories you spend most in. From there, identify what benefits and features you want from the card so that it works for you.
Cashback
Cashback is an easy way to make money back from your credit card spending. Typically, this comes in the form of a percentage.
It is essential to remember that cashback rewards only make financial sense if you pay off your credit card balance each month on time and in full. Otherwise, interest payments could negate any savings earned.
According to certain offers, you could potentially earn more cashback for certain days throughout the year. Be aware that these deals usually have introductory requirements and spending limits so it’s worth reviewing them before signing up for a new card.
Cashback is typically easier to redeem than rewards points, as it’s credited directly into your account. You can also turn it into vouchers or donate it to a charity of your choice.
Vouchers
Rewards credit cards provide various vouchers. These may include gift cards for retailers, merchandise and travel perks.
Some cards convert points you’ve earned into vouchers to use at a retailer, while others send them directly to your home and let you decide what they are worth. It is essential to read through any reward scheme’s terms carefully in order to discover whether there are any limitations on how you can redeem your points.
When selecting a rewards card, be sure to consider one that complements your lifestyle and budget. For instance, if you tend to spend a lot of money on gas or groceries, look for a card which offers greater rewards in these categories.
There are some specialised credit cards that offer lower cashback rates on purchases made at certain stores. These could be beneficial if you shop frequently at those outlets or are considering making large purchases soon.
Travel
Travel credit cards provide rewards in the form of points or miles that can be redeemed for flights, hotels and other travel-related purchases. Currencies differ between cards but typically pay you a certain number of points or miles per dollar spent on eligible purchases.
General travel cards typically provide flexible rewards that you can use to book directly with the issuer or transfer to various airline and hotel chains. Airlines and hotel loyalty programs often reward members with discounts, experiences and perks for being loyal customers.
When booking flights or hotels, the right card can mean the difference between paying high rates and saving money. Select a card that fits your spending and redemption habits, as well as how its perks stack up against its annual fee.
Many cards offer welcome bonuses that can add hundreds of dollars towards free travel. But it’s essential to meet the minimum spending requirements before being eligible for these offers, and you should also be willing to put in effort into maximising the advantages of your card.
