Credit Card Reward Programs – What You Should Know
In today’s world, it’s almost essential to have at least one credit card. Hotels and rental cars, large purchases, emergencies and even for identification purposes – you need a credit card. Why not have one that rewards you for your purchases? With so many credit card companies and so many different offers, it’s easier than ever for consumers to take advantage of reward programs. Here are a few tips on finding the right credit card for you – and how to get the maximum benefit from it.
Find the Right Rewards Program
There are a lot of credit card offers available today. You probably get a lot sent to you in the mail. If you are looking into finding the right rewards program for your needs, you should hold on to those offers to compare with others. The Internet is also a great tool to find and compare credit card offers quickly and easily. There are so many rewards programs that with a little bit of research you should be able to find the one that is right for your needs.
When looking into credit cards with rewards, make sure you think about what rewards would give you the greatest benefit. Some cards simply give you cash back for your purchases. This is a great reward if you don’t have a particular need such as merchandise or airline miles. With gas prices increasing, gas reward cards may be a good way to maximize your rewards. Make sure that you compare several different credit card offers before choosing one. Many rewards offers are very tempting, but don’t get distracted by offers that aren’t suited to your financial needs. For example, if you fly frequently, but don’t plan on using your card for any large purchases, airline mileage rewards won’t do you much good as you will be waiting a while for that free flight. A cash back or gas rewards cards may benefit you more.
Investigate Advantages and Disadvantages
Okay, so you’ve found a credit card rewards program that sounds great ‘ just the right reward for your needs. But have you read the fine print? Don’t stop after finding the right rewards ‘ make sure all the other details of the credit card suit you as well. You may get the cash back reward you were looking for, but if you have to pay a higher interest rate or a pricey annual percentage rate ‘ it may not be worth it. Do your research and find a reward program with all around good benefits. Also, be careful if you are getting in on an introductory rate. A credit card that offers the rewards you want with a 0% interest rate for the first year may sound perfect, but make sure whatever interest rate it goes up to after the introductory period is something that you can live with. Also, look into the limitations and restrictions of your rewards program to make sure that you can take full advantage of the benefits.
Use Wisely
Once you have found the right card with the right program for you, make sure you manage it well. If you rack up the purchases and are always carrying a balance, chances are the interest you are paying negates any kind of reward you will receive. Closely examine your statement when it is sent to you and keep track of your rewards. There may be limitations to your rewards such as when you can use them and there may even be an expiration date to use them by. Don’t let your rewards go to waste!
Watch the video related to credit card rewards
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Help answer the question about credit card rewards
What are the credit card rewards program of American Express Blue Sky Rewards Credit Card?I'm considering applying for Blue Sky from American Express. What are the rewards credit card program benefits and features of Blue Sky American Express?
February 9th, 2009 at 11:54 am
Citi PremierPass(SM) reward program enable cardholders to earn a point for each dollar spent for general purchases and a point for each three miles flown by a cardholder on any airline. It may include others who buy the ticket using the card.The points earned can be used for travel, products; gift certificates and the like. The most number of points that can be earned annually is 100,000. There is expiration if the account has no activity in every three years.
You may find a great Citi Premier Pass Credit Card Review here:
http://www.rewardcreditcardsite.com/travel-rewards-credit-cards/citi-premeir-pass/
February 9th, 2009 at 12:05 pm
citi driver's edge options gives 6% on gas, grocery,drug store for first year — after first year it is 3%. The cash can be only redeemed for auto repair/services or buying new car. It also has 1 cent per mile you drive – not a bad deal in this age of high food/gas prices
second one is chase freedom — gives 3%casback in top 3 categories. If you are patient to wait till you accumulate $200–it gives additonal $50 as bonus — equivalent to 3.7%cashback
February 9th, 2009 at 12:23 pm
When I use my Emigrant Direct credit card I get cash back deposited into my online savings account I have with them. The interest rate on the savings account is great, no fees or minimum balance. No annual fee for the card either.
February 10th, 2009 at 5:47 am
It sounds like Card #1 is the American Express Blue Cash card. I'm quite familiar with that card's reward structure.
Assuming your monthly spending is even across the 12-month period, then you should go with Card #1 (AmEx Blue Cash). Here's why: Your average rewards for supermarket spending with card #1 will be 3% (i.e. (5% + 1%) / 2), while your average rewards for supermarket spending with card #2 will only be 2%. Your average rewards percentage on all non-supermarket/gas/drug spending for both cards will be 1%.
Note, however, that to really know the optimal card for you for certain, you should take into account your entire categorical spending profile (including gasoline spending, drug store spending, and any other special rewards categories with either card).
You might find that this credit card rewards calculator is helpful to you:
http://www.creditcardtuneup.com/
February 10th, 2009 at 7:39 am
It's a reduction of a non-deductible expense so it isn't classified as income on a personal return.
If the credit card is used by a business, any reward program funds must first be used to reduce the interest expense claimed so that effectively makes it taxable as if it was income.
February 11th, 2009 at 5:24 am
I wasn't aware that these fees got charged back to the vendors. I definitely do not think that it's fair for them to increase your transaction fees just because their customer has a rewards card.
There is a bill right now that is in the House to require card companies to negotiate their rates with vendors, rather than having a set non-negotiable fee. I haven't read the bill, so I don't know whether I agree with it's text. However I do agree that something has to be done. I'd be in favor of requiring the card companies to charge the same fee to all its vendors, otherwise, I expect large retailers (wal-mart for instance) would be able to negotiate a much lower rate with the credit card companies than the small business owner could, based on volume.
February 11th, 2009 at 8:46 am
February 12th, 2009 at 3:18 am
February 12th, 2009 at 5:58 pm
For those who have very good credit and have plans of taking advantage of the reward program, American Express designed a card for you, the Blue Sky Rewards.
What are the reasons why this card is simply for you? It has reasonable interest rate. You do not any annual fee to pay for. You can also take advantage of the 0% introductory rate for your purchases in six months time. It has to be made clear that the introductory rate for balance transfers only applies to those who initiate a transfer when applying online for the card.
The great thing about the Blue Sky from American Express, the credit card rewards program are amazing. There's no annual fee, low introductory rates, and free rewards program with no blackout dates or travel restrictions.
Other benefits offered by the Blue Sky from American Express include auto rental insurance, a Return Protection which credits cardholders with the maximum amount of $300 for purchases that are non-refundable in 90 days. This also includes a year end report.
You may find a great review here:
http://www.rewardcreditcardsite.com/travel-rewards-credit-cards/blue-sky-from-american-express/