Rewards Credit Cards

Credit card rewards programs are one of the most popular aspects of credit cards as card holders can obtain a number of different useful benefits from making purchases. There are numerous types of rewards cards that include benefits such as points that can be redeemed for flyer miles, gift cards and cash back. It’s important to choose the best credit card rewards program for your needs. It’s imperative that all credit card holders understand the terms and requirements for each card. Should you fail to clearly understand the requirements of each card, you may find that your rewards card becomes more trouble than what it’s worth.

Banks and lenders provide gifts to their customers and it’s important to make sure that you avoid any pitfalls or potential problems that could arise from using various credit card rewards programs. Also, rewards are for consumers who faithfully pay their credit card bills and balances and can handle shopping with credit in a responsible manner. For those who have difficulties using credit cards in a responsible manner, rewards programs may be more of a hindrance than a help. Choose rewards cards only if you can pay your credit balance on time each month and use your credit cards in a responsible manner.

When choosing rewards credit cards take the time to research a variety of cards and look for those that do not have an annual free. The majority of credit cards will not have an annual fee, but avoid those that do. Make sure that your rewards are greater than the annual fee. Cards that have an annual fee of $50.00 or more should be avoided.

Another area that must be taken into consideration is award availability. For example, many credit card rewards programs offers frequent flier miles but when someone wants to use those miles, they may encounter difficulties. Airplane seating that is designated solely for frequent flier miles are often hard to get and can make your rewards card seem futile. Look for rewards programs that are geared towards letting consumers choose their flight and selecting regular or standard seating as opposed to those reserved for those with frequent flier miles. Though it may seem difficult at first, you must read the fine print. Those who are often surprised by terms they were unaware of often discover after the fact that the terms were written in the fine print. Check for any stipulations that govern when and how you can access your points or rewards.

Determine whether or not the rewards credit card has a limit set regarding how much money you need to spend before you can access the rewards. Always check the fine print to determine what the limits are and how much you’ll need to spend monthly before you can access your rewards.

When choosing credit card rewards programs check with each card to see how long you’ll need to wait before you can get the rewards. Some programs may make you wait more than one year while some will let you access your rewards immediately. In addition to waiting before you can obtain your reward, there are many cards that place expiration dates on your rewards.

Make sure that the rewards program doesn’t have a ceiling or limit as some cards will only allow you to receive a certain amount in rewards over a specific time period. Those who plan on using their cards on a frequent basis and wish to acquire rewards greater than the limits may find that getting multiple cards with different reward programs or a card that has a higher reward limit. As long as you can pay your balance in a timely manner there is no reason you can’t have multiple credit cards. You’ll also find that once your credit cards reach between 30 and 50% of your credit limit your credit score can become negatively impacted. If you plan on using your cards frequently and in a responsible manner than consider choosing multiple credit card rewards programs.