Of course your mothers always said "Don't keep all of your eggs in one basket". It just is not wise to put all of your cash assets into one financial institution, or is it? Well, with the new credit card rewards programs it is now a wise move to put all of your finances onto one particular card.
In fact, the best credit card offers give users cash back advantages and even rewards that go as far as travel, auto insurance and restaurant gift certificates. Most credit cards give cash back- even for students! Whether you are looking for a VISA, MasterCard, Discover or American Express, you can find a card with low rates and fee free with a rewards program to boot!
How does a rewards program work? Rewards can be earned easily by using cards that offer them. They are gaining instant popularity because consumers are being rewarded for the money they spend throughout the year with or without the rewards programs. The best part for card holders is that you don't need excellent credit or even good credit to get into the rewards - fair credit works just fine for many of the cards offered.
How Can I spend my Rewards?! Cash back is the most popular of all the rewards a consumer can get. Usually a card holder gets a certain percentage "cash back" when purchasing with their card. It usually ranges from 1% to 5% cash back. You sometimes have the option of either getting the money automatically credited to your credit card or sent a check for the rewards amount. Other cards (outside of cash back) offer gas rebates, merchandise rebates or travel vouchers. Depending on the credit card will determine how you can earn and spend your rewards.
How to decide which rewards program is right for you. Now, in a lot of cases it does not make a difference if you have bad credit but the higher your credit score will determine how good of a rewards program you will get. The most accurate way of finding a rewards program for you is to look at how you spend your money.
The majority of credit cards give you one point for each dollar you spend. These points are redeemed in a multitude of ways so determine what you would use them for the most. Whether for airline tickets or cash decide what you want to spend the money on. Another consideration to take when choosing a rewards program is if you will be carrying a monthly balance with your card each month.
If you will, having a rewards card may not be the best decision for you. These cards usually come with a higher interest rate than normal credit cards so stay aware of this. Your rewards program might just be breaking even for the extra money you will be paying out in interest each month!
How to get the most from any rewards program. The most effective way of finding the right card for you is to decide where you shop the most and how much you spend. There is no reason to get a card with points which will expire before you can possibly use them just like it is not wise to take bad credit card offers.
Credit card companies who offer the best card offers usually will help you decide between the multitudes of cards. By choosing the right card for you, you can maximize your rewards for the least amount of spending. By using your rewards credit card for all of your daily (normal) spending you will get the most from your rewards program.
It is tough to reach the substantial rewards that many cards have. For instance, most travel cards want you to earn 25,000 points in order to cash in on free airline tickets. This would mean around $25,000 spent (although many cards offer double and triple points for specific purchases).
Depending on where and when you spend your card you can earn some substantial rewards. Be careful of the limits that many cards offer as far as how many points can be earned annually and when the points expire. Remember: all the main card carriers offer great rewards programs, VISA, MasterCard, Discover and American Express. Happy shopping and happy rewards!
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