Maybe this is simple question, how to find best reward credit cards? Finding the best reward credit cards does not have to be a difficult task. In fact, with so much information available on the Internet, it is quite easy to compare different cards to find the best ones available. Really, it comes down to your individual needs when deciding on the reward credit card. But, there are a few things to consider when trying to determine which reward credit card is best.
Earning Points
Most reward credit cards work by awarding you points for all purchases you make with the credit card. Some will offer a standard rate of return on all purchases and offer extra points for specific purchases. For example, an airline rewards credit card may give you extra points when you purchase items on your credit card with the airline it is associated with. Or, a gas rewards credit card may provide you with extra points whenever you make a purchase at their specific gas station. Some rewards credit cards take a broader approach and award bonus points for purchases made at any gas station, regardless of the brand. Or, they reward points for purchases made at grocery stores or drug stores.
When choosing a reward credit card, research how you can earn points in order to receive rewards. If you don't drive often because you live in the city and take the bus, a gas rewards credit card won't do you a whole lot of good. Choose a reward credit card that fits naturally into your current lifestyle so you can take advantage of the purchases you make anyway.
Points Value
Of course, when using a reward credit card, you want to earn as many points as possible for the card. But, don't be fooled by a credit card offering 10 points for every dollar spent as opposed to one offering just 2 points for every dollar spent. Learn more about what you can buy with the points you earn and how much it costs to make those purchases.
Earning large amounts of points doesn't do you much good if the rewards cost a large number of points to purchase. For example, you may earn 10 points for every dollar with one credit card, but it takes 100,000 points to earn a $25 gift certificate. This means you had to spend $10,000 to get that gift certificate. With another card, you may only earn 2 points for every dollar spent. But, you only need 10,000 points to receive a $25 gift certificate. With this card, you need to spend just $5,000 to get that gift certificate - half of what you needed to spend with the other credit card.
Expiration Dates
Some reward credit cards have expiration dates on the points you accumulate. Be sure to consider these expiration dates when choosing your card. If, for example, the points expire after just one year, you might not be able to save up enough points to do anything useful with them. So, you should assess your spending habits and get an idea of how many points you should be able to accumulate during that time period. If it appears you will be able to save enough points and take full advantage of the rewards program, then the expiration date may not affect you too negatively. Nonetheless, the best reward credit cards will give you the freedom and flexibility to spend your points whenever you are ready to spend them - even if it takes you a couple years to save up for what you really want.
Points Caps
Some reward credit cards also put a cap on how many points and rewards you can earn per year. Find out what this cap is and determine if it is too low for you. If, for example, you typically spend about $20,000 per year on a credit card, but the reward credit card you are considering only provides points for the first $15,000 spend, you are spending $5,000 on that card that is going unrewarded. If this is the case, you have two options. One option is to pass on the card and find one that better fits into your spending habits. Or, you can apply for the card but stop using it after you have reached the cap. Then, do the remainder of your purchases on a different credit card.
Earning Points
Most reward credit cards work by awarding you points for all purchases you make with the credit card. Some will offer a standard rate of return on all purchases and offer extra points for specific purchases. For example, an airline rewards credit card may give you extra points when you purchase items on your credit card with the airline it is associated with. Or, a gas rewards credit card may provide you with extra points whenever you make a purchase at their specific gas station. Some rewards credit cards take a broader approach and award bonus points for purchases made at any gas station, regardless of the brand. Or, they reward points for purchases made at grocery stores or drug stores.
When choosing a reward credit card, research how you can earn points in order to receive rewards. If you don't drive often because you live in the city and take the bus, a gas rewards credit card won't do you a whole lot of good. Choose a reward credit card that fits naturally into your current lifestyle so you can take advantage of the purchases you make anyway.
Points Value
Of course, when using a reward credit card, you want to earn as many points as possible for the card. But, don't be fooled by a credit card offering 10 points for every dollar spent as opposed to one offering just 2 points for every dollar spent. Learn more about what you can buy with the points you earn and how much it costs to make those purchases.
Earning large amounts of points doesn't do you much good if the rewards cost a large number of points to purchase. For example, you may earn 10 points for every dollar with one credit card, but it takes 100,000 points to earn a $25 gift certificate. This means you had to spend $10,000 to get that gift certificate. With another card, you may only earn 2 points for every dollar spent. But, you only need 10,000 points to receive a $25 gift certificate. With this card, you need to spend just $5,000 to get that gift certificate - half of what you needed to spend with the other credit card.
Expiration Dates
Some reward credit cards have expiration dates on the points you accumulate. Be sure to consider these expiration dates when choosing your card. If, for example, the points expire after just one year, you might not be able to save up enough points to do anything useful with them. So, you should assess your spending habits and get an idea of how many points you should be able to accumulate during that time period. If it appears you will be able to save enough points and take full advantage of the rewards program, then the expiration date may not affect you too negatively. Nonetheless, the best reward credit cards will give you the freedom and flexibility to spend your points whenever you are ready to spend them - even if it takes you a couple years to save up for what you really want.
Points Caps
Some reward credit cards also put a cap on how many points and rewards you can earn per year. Find out what this cap is and determine if it is too low for you. If, for example, you typically spend about $20,000 per year on a credit card, but the reward credit card you are considering only provides points for the first $15,000 spend, you are spending $5,000 on that card that is going unrewarded. If this is the case, you have two options. One option is to pass on the card and find one that better fits into your spending habits. Or, you can apply for the card but stop using it after you have reached the cap. Then, do the remainder of your purchases on a different credit card.
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