Author Box
Articles Categories
All Categories
Articles Resources

General Guide to Rewards Credit Cards

February 21, 2012 | Comments: 0 | Views: 147

The rewards credit cards are undoubtedly the most attractive these days. Now you get even more perks due to the greater competition among issuers. You just need to know your options, to evaluate their pros and cons objectively and to make an effective comparison of the different offers available.

Your Main Options

There are three major types of rewards credit cards. In terms of popularity, the cash back credit card offers come first. With these offers, you get a certain percentage off the items that you purchase. Usually, you can save on the main types of products that you buy such as groceries and gasoline, but some cards allow you to save on clothing and other more expensive items. The typical cash back is no greater than 2 per cent in most cases, but sometimes you can get as much as 5 per cent. Sometimes, the issuer has special agreements with certain stores where you can save even more.

The point rewards cards come next. In most cases, you get a point for each dollar that you spend. You can use the accumulated points to get free items as gifts. Sometimes, you get a gift certificate of a certain value. In other cases, you get a specific product or a service.

The cards with travel rewards are your third main option. In most cases, you get airline miles, but sometimes you receive points for hotel stays. Again, one dollar spent gives you one mile or one point. Usually, the issuer works with a set number of airlines and/or hotel chains or just with one. Once you receive your card, you are automatically included in the respective airlines' and/or hotels' frequent traveler programs.

Benefits and Drawbacks

The benefits of the rewards credit cards are pretty obvious. You can save considerably on your daily expenditure with most of the cash back credit card offers. You can get free gifts, free airline tickets and even free hotel stays. Often, the issuers are even more generous and give you greater cash back percentages, a vacation as a gift or 2 airline travel miles for each dollar spent instead of one.

The drawbacks of these offers have to be considered as well. Usually, the interest rate is higher than the one that comes with regular cards. You will most likely have to pay considerable annual fees which may be higher than $100. The limit may be lower. Additionally, there are spending caps on the cash back offers and other similar restrictions. One important thing to note is that your rewards may be taken away from you in case you are late with a payment or you default.

Comparing Rewards Credit Cards

The fact that these offers are not as perfect as they seem should not put you off. After all, you will still be able to save considerably if you pick the right offer for you. The best way to do this is to make a comparison between the offers available.

You are highly recommended to use a service for rewards credit cards comparison to save time and effort. Remember to compare the most important points - size of the rewards, interest rate, fees, limits and penalties.

Now you can compare numerous rewards credit cards with the click of a button. View a large number of cash back credit card offers at a glance. Make a comparison based on your own needs and pick the best one.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Rewards Credit Cards


Credit Cards


Cash Back

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Many retailers use private label credit cards to increase customer satisfaction and loyalty in addition to sales. They offer the card to their customers and usually the customer receives some kind of

By: Kelty Wallacel Finance > Creditl June 13, 2012 lViews: 157

Every individual has a credit rating and report. Though this information is not usually seen by consumers, it is always analyzed by lenders prior to the granting of a financial service. If your

By: Allan Koenenl Finance > Creditl June 12, 2012 lViews: 154

In order to analyze the balance sheet and profit and loss account pertaining to any firm, ratio analysis serves as an important tool. Especially seasoned bankers and financial institutions are making

By: Gauri Sankarl Finance > Creditl June 10, 2012 lViews: 204

Ratio analysis helps in analyzing the financial statements of any firm namely; the balance sheet and profit and loss account. In fact the credit analysts who are employed by the bankers and financial

By: Gauri Sankarl Finance > Creditl June 10, 2012 lViews: 217

Stakeholder is a person interested in the affairs of any firm or company. Normally this term is used when it comes to security markets. When a company is in a position to raise its capital, the

By: Gauri Sankarl Finance > Creditl June 10, 2012 lViews: 147

With the ever-increasing gas prices, many people make saving money on gas a priority. It is possible to save some money on your gasoline purchases through the careful use of gas rewards credit cards.

By: Debra Lee Dragonl Finance > Creditl June 08, 2012 lViews: 186