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Best Reward Card - What is the Best Reward Card for You?

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Many people find themselves feeling as though they should be rewarded for choosing a certain credit card company and using their card. Fortunately, many credit card companies agree. This is why customers are now able to obtain credit cards that offer rewards to customers that responsibly use their card.

Now that consumers are aware of the opportunities that reward programs present, they are left wondering how to choose the best reward card. In order to choose the best reward card, consumers must first understand the types of cards available and how these rewards programs actually work.

What Are The Types Of Rewards Credit Cards?

There are a large number of different rewards cards available to consumers. One type of rewards card is one that will offer cash back rewards once a customer has spent a specific amount of money. Other types of rewards cards offer discounts on auto purchases, allow customers to earn frequent flier miles, add to their retirement funds, or even help customers fund entire vacations. With these kind of options, many consumers are overwhelmed and left wondering which kind of card to choose.

Best Reward Card: Cash Back and Other Rewards

Credit cards that offer cash back rewards generally allow a customer to earn cash back on a certain percentage of their purchases. The percentage that a customer earns is usually very low, around 1-2% and may only be collected once the reward reaches a certain amount. An example of this type of card is the Capital One No Hassle Cash Rewards card. Consumers holding this card will earn 2% cash back on money spent of groceries or gas and 1% cash back on money spent on all other charges. This cash reward can be redeemed by check, gift card, or can be deducted from the amount owed on the credit card. Card holders will also enjoy a 0% APR for the first year, yet will need to have excellent credit to receive this card.

Another example of a cash back rewards card is the BankAmericard Power Rewards Visa Signature Card. However, this credit card works a little differently, as the rewards are based on a points system. During the first six months of use, card holders will receive three points for every dollar that they spend on gas, drug store, and grocery purchases, while receiving one point for every dollar spent on other purchases. After the first six months, every dollar charged on the card will be equivalent to one point. Card holders may begin to receive awards once they reach 2,500 points, and these rewards consist of cash, travel expenses, gift certificates, and other exciting rewards. Card holders will also enjoy 0% APR for the first seven to ten months, as long as they have excellent credit.

Best Reward Card: Frequent Flier Miles

Many rewards cards also offer users the opportunity to earn frequent flier miles. While each card is different, these cards generally award users a set amount of miles per specific amount of money spent. An example of this type of card is the Capital One Venture Rewards Credit Card. This card will award users with two frequent flier miles for every dollar that a customer charges on the card. Additionally, if a user spends $1,000 within the first three months, they will receive a bonus of 10,000 frequent flier miles. This card also offers customers a free annual fee for the first year, which is normally $59, but does not offer a 0% introductory APR. To obtain this card, customers will have to have excellent credit.

Another example of a great rewards card that offers frequent flier miles is the Miles by Discover card. Card holders will receive one frequent flier mile for every dollar that they spend. However, when a customer uses their card to make a purchase from certain hotels and airlines, they are eligible to receive two points per dollar spent. The Miles by Discover card offers customers with excellent credit an APR as low as 11.9% and does not require customers to pay an annual fee.

How To Choose The Best Reward Card:

When determining the best reward card, select a card that not only offers rewards that would benefit you, but also offers a low APR, reasonable annual fee, and has other features that meet your needs. It is important to consider that card holders will have to charge a considerable amount of money to begin earning awards. Consumers that rarely use credit cards may not even benefit from these rewards programs.

Additionally, do not always be drawn in by a low introductory APR. Many times, this introductory APR is followed by a rate that is much higher than what other cards are offering. Therefore, when searching for the best reward card, consider all aspects of the card before deciding if the potential rewards would truly benefit you.

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