Reward credit cards and charge cards are offered everywhere. From cash-back to travel, it seems like everyone is offering something, often times with strings. Here is how to find the right rewards card for you.
First, determine the reward you really want. This is one of the most important steps in the process. What good is getting a card with airline miles rewards if you never fly? Wanting to get cash back on the purchases you make? Maybe you prefer something with hotel rewards. Either way, determining the correct type of reward you want will help point you in the right direction in selecting your new card.
Next, find out what the requirements are. Applying for a credit or charge card that requires excellent credit when your credit is average at best is a mistake. Sure, there may be a slight chance you could get it, but most likely you won’t. However, there will be another inquiry on your credit report which will not only have some effect on your score, but could also signal to a credit company that you may have recently approved credit. Applying for future cards may then be hindered.
After that, pay attention to the details. They may offer 10,000 bonus airline miles with your first purchase, but how are the miles used when you need them? Are there blackout dates that restrict your travel? Can you use them at any airline, or just one? Some rewards may sound great, but in reality there is no way to use them. In this case, only the credit card company makes out!
Finally, look at the rates and fees. If you have narrowed your choices down to just a couple of cards, take a look at the interest rate APR, terms of how the rates are computed and the fees involved. Just because they waive the fee the first year does not mean it is the better card, especially if it is higher than the annual fee of the other choice.
Reward Credit Cards – Finding the Right Credit Card Rewards (In Today’s Market)
07-01-2010 by adminCash Back Credit Cards Or Reward Credit Cards – Which One is Best For You?
13-12-2009 by admin
So, you want a new credit card and figure getting a reward card is the way to go. But you’re a bit confused about the difference between reward credit cards and cash back credit cards. It’s not surprising because even many credit card companies use the terms interchangeably. But they are different.
Make the right choice and you’ll find yourself with “free” gifts or cash. Make the wrong choice and you might not see any “free” rewards at all.
Invest just a little bit of time online comparing offers and when it comes time to redeem your rewards you’ll get what you want.
Here are some of the more important things to consider:
Would You Prefer Money, Products or Services?
Whereas a cash back credit card will send you cash periodically, a reward credit card issues points or miles for your purchases. You can then convert the reward points into discounts on travel and/or various services and products. The rewards vary from one card to the next.
How Do You Get the Most Value?
On the surface nothing beats a financial rebate. However, reward cards that give you points or miles often offer incentives that are usually worth quite a bit more than what you’d get for the equivalent use of your cash back credit card.
Thoroughly scrutinize what you can trade your points for because if you find things you like you will get much better value from reward card cards than from cash back credit cards.
The Big Problem with Reward Credit Cards
Reward credit cards can be a time-sucking hassle because you need to keep track of your points in order to get your rewards whereas cash back credit card companies either send you your money automatically or apply it directly to your balance due.
So, if you don’t want to bother tracking your miles and/or points a cash back credit card would be a better choice.
Obtaining a Cash Back Debit Card
21-07-2009 by admin
A cash back debit card is an excellent substitute for people, who are not eligible for a cash back credit card. You will be in control of your spending with the help of such a card and gain certain rewards at the same time.
The concept of cash back debit cards is relatively new, whereas reward programs with cash back credit cards are commonly popular. Due to this reason, it is important to research and choose the best cash back debit card, which suits your needs.
How To Obtain A Cash Back Debit Card?
There are certain steps involved in obtaining a cash back debit card, which offers certain rewards or incentives.
1. You need to open an account with a local bank to get a debit card, which provides cash back rewards or incentives. As the cash back rewards on debit cards is a new concept, hence most of the banks still do not have this option. However, some new banks do offer this as a method to attract new customers.
2. You may contact various financial institutions such as banks or credit card companies to obtain a debit card. You may receive a secure credit card depending on the location you reside, bank balance that you have, and this secured credit card will work similarly as a debit card works. However, make sure that this card offers similar benefits or rewards that of a debit card.
3. The next step to obtain a debit card is by opening an account such as a PayPal account. It is an online system, which will allow you to receive and send money and invoices. It will also allow you to make various payments to different companies. You do not have to pay money to open an account, but have to follow certain steps that include providing your personal details and verifying the bank account details. After completing the above formalities, you may ask for advancement to a business or a Premier account. You may then apply for a cash back PayPal debit card. This type of debit card makes you eligible for cash back up to 1 % on purchases. It also gives you an access to the balance on your PayPal account without any complex transactions.
4. Check out various websites available online, compare the differences, rewards, and benefits that such kinds of debit cards offer. The percentage of benefits that such kinds of debit cards offer differs largely. Similarly, the locations entitled for such kind of cash back benefits utility are limited in proportion. Once you find a card, which best suits your needs, proceed with the application for that particular card on the website and receive a feedback for it within minutes.
Overview:
Finally, such kinds of debit cards are useful, if they come with zero annual fees. The reason being, if there is some annual fee, then you might end up spending more than what you may earn through these cards in the form of rewards or points.
Rewards Cards – Use Them For Your Own Profit!
30-06-2009 by admin
Would you like a free gift with your purchase? Reward cards are a great way to get tons of free gifts by doing what Americans do naturally – buy more stuff! No, this isn’t a scam because many credit card users have been doing it successfully for years. In fact, its one of the best methods to get some payback on those pesky credit card companies for flooding your mailbox (both email and snail mail) with constant advertisements for their latest credit card advertising campaign. So if you’re tired of “taking one for the team”, let me show you a sure fire way to make your money work for you and make the credit card companies pay your way to a free weekend in Cancun or add some extra cash to your bank account.
First, let me add in one quid pro quo. If you currently have credit card debt or carry a balance from month to month, you should essentially forget about getting any type of serious reward cards. However, its still possible to profit from a carry over balance if you absolutely have to carry one. It is a 99% bad idea to obtain a rewards card if you do not pay the monthly balance to $0.00 each and every month unless you find the right card (I’ll explain the 99% explained later). Let us use a real life example of a poor instance to use a rewards card.
Hypothetical: you want a free plane ticket from New York to Los Angeles. This fictitious ticket will cost you $300.00. Now lets assume the interest rate on your shiny new rewards card is 15%. For simple math purposes, lets say you carried a $1,000.00 balance each month for the first year, hoping that you’ll gain enough points to get that free flight within the first year of having the card. Guess what? You have effectively paid for half of the ticket price in interest charges because 15% annual interest on a $1000.00 balance is $150.00. Whereas, depending upon your reward points system, you’ve more than likely obtained a very meager reward point balance (5-10%) to even qualify for a reward ticket.
Now that you see how you have been duped, lets explain THE TRUTH behind how the business works. Credit card companies purposely dangle the opportunity of a “freebie something” and the unsuspecting consumer signs up. However, with the 15% interest charges (or >25% if you fail to pay on time) paid to them for your mistake in carrying a balance, the profits from the card are much greater than the cost of free airline tickets or the 5% cash back awards given to those consumers (like me) that maintain a zero balance every month. Their business model therefore generates an automatic minimum 10% profit if you consider that for every 1 person who carries a balance versus every 1 person who doesn’t. Rest assured that this value is not a 1 to 1 ratio because if it were, the credit card companies would most likely pull all of their reward card programs off the shelf due to increased customer reward payouts. They not only have very little probability of making a financial loss on this deal, but can retract their offer “at their discretion at any time without prior notice”. Talk about a great business model right? Worst of all, you likely got duped into paying an annual fee!
Luckily for most unsuspecting consumers, it is often difficult for low credit score individuals to obtain a rewards card. They are perk of a having good credit, but a person with reasonable credit scores can obtain a decent rewards card with very little search. Although, the premium reward cards typically require a very good to excellent credit score.
Still with me? Here is the good stuff because I’m going to show you several excellent credit cards with no annual fee, low or zero interest rates, and best of all real rewards.
The American Express Blue. This card features 3 versions at last count: a travel card for jet setters, a 5% cash back program, and a generic blue card that can be used for cash and travel. The Discover Open Road Card. For all you road warriors, this card gives you 5% back on all gas purchases. So now that your SUV takes $100 to fill up, you’re putting $5 back in you pocket. So what is a lousy $5 compared to a $100 fill up? Say you fill up twice a month for 1 year, which is equal to $2400.00 so you just saved yourself $120 bucks or 1.2 fill ups that year. For duel income families, gas can cost more than $200/month, so take advantage if this applies to you. The Discover More Card. This card allows you to gain cash back from the balance you carry up to 5%, and has a 0% interest for 1 year. So you get the 5% reward for signing up with Discover bottom line for 1 year. After that, you could just cancel the card or switch to another card program to eliminate any chances of paying a finance fee. If you’re seriously strapped for cash, look into this card further as it may just be a lifesaver if you’re paying 10-25% interest on your other cards.
The take home message is that when these programs are thoroughly researched, it actually pays you to use their services IF you are financially responsible and spend some time accurately following your finances. Remember, all of this information is available online so it benefits you to do your investigative work or find an online resource to distill the information for you (hint read my profile).
Personal Note: as always, questions/comments/concerns are always welcome. I have no affiliation with any of the cards mentioned in this article.