Credit card companies do face a lot of competition these days - with each bank knowing that they make a lot of money from interest charges, annual fees, late payments, and the like. Because of the stiff competition, however, some of the card features that are now available on reward credit cards can really bring great benefit to you. You do not have to let the bank line their pockets with your hard-earned cash every month. Here are some of the options that will provide some of the greatest benefits.
?0% Interest
The best reward credit cards will start by offering you 0% interest on both your balance transfers and your purchases. If you look at the interest that you pay on your current credit cards, you could save that amount each month by transferring your balance to this kind of card. Before you just sign up, however, try to avoid transfer fees that might apply, some as high as 5% or higher on the transferred amount.
Another factor to consider is how long the 0% APR lasts on the particular reward credit cards in question. The 0% APR is only for a specified time, anywhere from 3 months up to 15 months. Also, you will want to check and make sure that the 0% APR is for both balance transfers and for your purchases. Many cards will give you one or the other, but there are some that will offer both.
The Rewards Being Offered
The very best reward credit card offers now offer more and more rewards - which means it is a good time to get one. Here are some of the rewards you can get.
?Air Miles
Travelers can greatly benefit by getting air miles credited to their card. Most reward credit cards give an initial amount of air miles - possibly up to 25,000. Then air miles are earned according to each dollar spent. Some give points per dollar spent, and others give miles per dollar spent - or a similar arrangement. One company even allows family members to pool their air miles together! The best kind of rebate credit cards will allow you to use your air miles with any airline. These kind of cards are issued by banks, rather than the ones offered by the airlines. Watch out for air miles that could expire after a certain amount of time - you don't want to lose them.
?Rebates
Other credit card rebates allow you to earn points for every dollar that you spend. These are often divided into two groups. The one that earns the highest benefits, anywhere from 1% up to 6%, are for your purchases of groceries, gas, and medicine. Most other purchases will fall into a lower category - usually from 1-3%. These points are often redeemable through cash, merchandise, and travel benefits such as hotels and restaurants, or gift certificates.
Some business reward credit cards enable you to get rewards for many of your business purchases, including office supplies, travel expenses, car rentals, and more. Some of these will give an initial 10,000 points after your first purchase. If you have your own business, or use credit cards often for your business, a rebate card could bring you a great way to save on expenses, as well as offer a simple way to keep track of all of your expensesall on one monthly statement.
Reward credit cards can really be a great tool to save some money throughout the year. Avoid cards with an annual fee, which could be as high as $180.00 and beyond. A single late payment, on most cards, could also take away your benefits and set you into the regular rate of interestor higher. The maximum benefit that can be derived from any reward credit, however, occurs when the balance is paid off IN FULL each month when the bill is due. Otherwise, finance charges will squash any benefit that you might receive from those reward points. |
