 By ASAP Credit Card - Copyright © 2008
Credit
card companies love to entice people with special reward programs - and for good reason
- it works! Reward credit cards have become the preferred form of plastic for
many consumers; providing cash bonuses, airline miles, gasoline rebates, gift
cards and more. So how do you choose the best reward credit card with so many options
to choose from? Here's what to consider:
The Primary Factor:
The most important thing to consider when choosing a reward
card is your personal needs and spending habits. Depending on your lifestyle and personal interests, different cards tend
to make more sense than others. Instead of trying to choose between a gasoline
credit card and an airline credit card, look at your spending habits and how meaningful
the payouts are first to see which type of program would work best for you. Because
different cards reward different kinds of purchasing behavior, pick the offer
that will benefit you for what you do the most - whether it's shopping, driving or traveling.
If
you don't travel much, then an airline credit card wouldn't make sense since you
won't be able to maximize your bonuses and earn extra points. Plus, you're less
likely to need the rewards you earn - so you'll be wasting time and money
on higher interest charges and / or annual fees. Likewise, a shopping or rebate
card tends to pay higher reward percentages when shopping a specific locations.
Do you frequent these locations? Can you use the rewards you'll earn?
Other Factors
to Consider:
Once you choose the type
of reward credit card that will benefit you the most, consider the following
factors to determine the best deal:
- Reward
Percentage / Amount: This is probably the BIGGEST factor to consider! How
much will you earn? Percentages / points can vary greatly between offers. Look
at how generous the company is and where you must make your purchases to earn
points.
- Bonus Rewards / Points:
Many rewards programs offer "double rewards" for a specified introductory period
or "bonus points" for getting approved. How much extra can you earn?
How long is the introductory?
- Fees:
Many reward credit cards have annual fees. Are there any with no annual fee? Which
card has the lowest? What other fees are associated with the offer?
- Reward Limits: Unfortunately, many credit card
companies try to limit how much you can earn with their programs. They've set
limits; normally, on an annual basis. Try to look for reward cards without any
limits.
- Reward Form: In what form
do you receive the reward? Cash? Credit applied to your credit card statement?
Points that you exchange for items? This really depends on how you personally
like to deal with your rewards.
- Reward
Expirations: Do the rewards expire? How much can you convey over a calendar
year and how long are your rewards ultimately good for before expiring?
- Reward Limitations: How can you spend your rewards? The most open-ended program
would simply send you a check that you could cash or apply a credit towards your
credit card balance. Programs with the most restrictions may only allow you to
use rewards for purchases towards a specific item (such as a new car, or shopping
at a specific location).
- Lowest APR:
Which card has the lowest APR? Is there an introductory APR with the offer? If
a 0% offer is available, consider it first since you'll save the most money during
the intro period. Which card has the longest intro period?
*
For a list of specific reward cards, please visit our cash
back, gasoline, or airline
mile sections. Or, see our complete list of reward credit cards >
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