Reward Credit Cards: Get the Best Rewards Card Incentive Program
A good credit reward card can contribute to your retirement account, offer gas rebates, score theme-park or vacation tickets or take thousands off theprice of your next auto purchase. Rewards at hotels, airlines, and retailers bring more to the possibilities but, adds to the confusion. Here are some tips to find the best reward programs for you to increase your buying power.
Who should apply for reward cards?
It used to be that if you pay off your balance each month, reward cardsare definitely worth considering. But now, many have come out with verycompetitive interest rates below 10 percent, so if your credit is goodenough to qualify, you need not necessarily discount a rewards card, unlessit hinders you from paying down your balance in any way.
Invest some time to maximize payoff
Anyone who wants to get the best deal must patiently compare offers, then manage them consistently afterwards. Scrutinize spending to give maximumrebate value for the dollar.
Calculate your spending to make the rewards worthwhile
If you charge $3,000 a year on a card that costs $45 annually, forexample, it will take over 6 years to earn a free airline ticket with mostcards. In that time, you will have paid $270 in fees -- enough to buy adiscounted air ticket on your own.
Frequent-flier miles were the first comers of the rebate creditcards. They typically value at 1% to 2% rebate or one mile per dollar spent, so choose the ones that offer the highest return.
Some airline cards have a "use it or lose it" policy, as do many travel or hotel rewards. If it will take you a long timeto earn your reward, you will want to make sure it will be there for you. American Express, for example, has programs that never expire and providesmiles that, can be used on a number of different airlines. If you traveldifferent airlines but need a Visa or MasterCard (accepted by more merchants),you can choose a bank-issued "travel awards" card.
About auto rewards
Car rewards tend to be the most generous in terms of what percentagerebate you earn but has its limitations. For example, if you earn 5% towardthe purchase of a vehicle, but only on select vehicles. You can always exchange to another card rebate program after you have reachedthe maximum reward to keep the discounts and continue to charge more.
With ever increasing gas prices, you can augment earnings by also applyingfor gas reward cards. Cardholders can earn higher rates on all gasolinepurchases.
Many theme-parks and attractions; such as, Disney and Universal, havecredit cards that give you points toward tickets, movies and other greatstuff.
Get cold hard cash
The easiest way to accumulate true savings is by taking advantage ofno-fee cash-back cards. To get the most benefit, choose a card that givesyou at least a full 1% back on all purchases. Also choose a card that comeswith retail card benefits where rates increase 5% to 10% when spendingat participating merchants and retailers.