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Credit Card Tips and Advice - Rewards Credit Cards Bookmark This Page Credit Card Tips and Advice Center Topic: Rewards Credit Cards See the subtopics menu for tips and advice about credit cards that give rewards. For additional information about credit cards, see the topic list directly below. Credit Card Topics · Applying For a Credit Card · Bad Credit Credit Cards · Balance Transfer Cards · Business Credit Cards · Cash Back Credit Cards · Comparing Credit Cards · Credit Cards for Students · Credit Monitoring · Credit Reports · Fixed APR Credit Cards · Gas Rebate Credit Cards · Hotel Reward Credit Cards · Improving Credit · Instant Decision Cards · Low APR Credit Cards · Rewards Credit Cards · Travel Reward Credit Cards · Using a Credit Card Rewards Credit Cards - Subtopics · Choose Your Reward · Find the Best Rewards Credit Card · Flexible Rewards · Low Interest Rates · Reward Card Fees · Rewards Cards Options · Switch Your Rewards · Visa Rewards Cards Choose Your Reward How can I maximize the credit card reward points I earn? You have undoubtedly heard of the myriad rewards which can be obtained using a reward card program. Some cardholders use their rewards credit cards to earn airline tickets, others use them toward hotel stays, and still others prefer to receive cash back or gift cards as their reward. If you are looking for the best credit card rewards, you need to look beyond what the rewards are that you will earn and instead look at how long it will take you to earn those rewards It certainly sounds appealing to open up a reward card account which earns points toward free gasoline, but how long will it take you to earn enough points to cash that in? Take a look at the terms and conditions of the reward program and see if there are certain purchases which can speed up your point accumulation. Many rewards cards offer double and triple points for purchases at certain establishments. If you can find a reward card program which doubles your points when you buy items at an establishment where you frequently use a credit card anyhow, then this is an excellent way to maximize the points you earn. Special offers such as these can turn a good reward card program into an excellent one. ^ Back to top Find the Best Rewards Credit Card How do I know which reward card is best for me? When you are searching for a credit card, keep in mind that the best reward credit cards are not necessarily the programs with the lowest interest rate. Some credit card companies will offer rewards cards with enticingly low interest rates but at the same time tack on high annual fees, point redemption fees, and many other costly charges that can make the low interest rate insignificant. In your quest to find the best reward credit card you need to take the time to compare different programs and find the one that is best for you. Look at the disclosure of every card and see if there are exorbitant fees or complicated point redemption procedures that will make it nearly impossible for you to ever claim your rewards. You should also make sure that the advertised interest rate for the reward card of your choice is not an introductory rate. You don't want your low interest rate to suddenly increase at the end of an introductory period. ^ Back to top Flexible Rewards Are there reward programs that offer a variety of rewards? It may be difficult to choose a rewards card program with all the various offers there are to sift through. Do you want cash back, or would you rather earn points toward an airline ticket? Perhaps you would rather earn points that are redeemable for merchandise. Unless one particular program appeals to you then you may be reluctant to apply for one credit card over the other. Instead of committing to one program with one type of reward, you may want to instead look into getting a flexible rewards credit card that allows you to choose your reward when the time comes to redeem your points. Flexible rewards credit cards generally allow the cardholder to earn points from making purchases with the credit card. The points can then be redeemed for anything that the reward program offers, whether it is an airline ticket, a cash rebate, an item from a merchandise catalog, a gift card, or any other reward offered through the program. Cardholders enjoy the adaptability of these plans, although some flexible programs do not accumulate points nearly as quickly as other reward programs. For many cardholders, however, the advantage of having a wide choice of rewards outweighs the lower percentage of points earned. ^ Back to top Low Interest Rates How can I find a low interest rate reward credit card? You may notice that many rewards credit cards have higher interest rates than credit cards that don't offer any bonuses or extra perks. Credit card companies sometimes charge higher interest rates for reward cards because there are higher fees associated with maintaining a rewards program, not to mention the additional fees that can come from offering free airline tickets, merchandise, or cash back. You should not accept a substantially higher interest rate just because you want to participate in a rewards program. Some of the best programs offering the most generous rewards still manage to offer competitive interest rates to their cardholders. You may even be able to find reward cards that feature 0% APR introductory interest rates and incredibly low interest rates on balance transfers. Two things will assist you in getting the best interest rate on a rewards card: a high credit score and your willingness to do some research. Low interest rate reward credit cards are out there, but you have to be willing to take the time to look for the card that best fits your needs. ^ Back to top Reward Card Fees Do credit card companies usually charge a fee to participate in rewards programs? The allure of reward credit cards is that you can earn nice extras just by using your card to make purchases. One unfortunate aspect of reward credit cards, however, is how some credit card companies tack on extra fees or a higher interest rate to these cards and justify the additional fees because of the rewards earned by the cardholder. Before you accept extra fees and a higher interest rate as a simple fact of life, you should know that not every reward card has these higher costs attached. Although it is true that cardholders with bad credit will undoubtedly encounter these fees when obtaining a reward card, people with bad credit usually pay higher fees and interest rates with any type of credit card. Cardholders with excellent credit, however, can find a reward card with relatively low interest rates and either no fees or very low fees. You should not assume that you will have to pay an annual fee or point redemption fees. Instead, take the time to research the available reward credit cards and find a card which does not charge extra fees and high interest rates. ^ Back to top Rewards Cards Options What types of reward card programs are available? Reward credit cards come in many different varieties, and the credit cards with best rewards depend largely on your needs. If you enjoy traveling, or travel frequently for business, you may want to look into obtaining a travel reward credit card. These cards allow you to earn points toward airline tickets and other travel expenses by making everyday purchases on your credit card. If you are trying to maximize your money, you may want to look into a cash back credit card. These cards offer cash back rewards to cardholders based on a percentage of their purchases with the credit card. You may also want to look into any of the various rewards programs which offer points which accumulate toward the purchase of merchandise. These programs can be a lot of fun for people who already use their credit cards on a regular basis because as the points build up the cardholder can choose from a catalog of merchandise. A cardholder, for example, can receive a bike, a stereo, gift cards, or any other number of items from the merchandise catalog using the reward points built up with the credit card. For just about every need there is a rewards card that caters to it: Free gas, free restaurant meals, free hotel stays. If you are going to enroll in a rewards program you may as well make it something that you will find useful. ^ Back to top Switch Your Rewards What if I want to switch the rewards I get from my credit card? The credit card benefits you can receive from a good rewards program can be great, but sometimes people sign up for a particular program and then later decide that they would much rather accumulate points toward something else. Unless you have a flexible rewards program with your card that allows you to pick and choose your rewards, you will need to contact your credit card company and inquire as to whether you can switch your rewards program without losing all of the reward points you have built up. Some credit card companies design their rewards programs this way, so that switching from something like travel rewards to cash rewards is no problem. Other companies, however, impose costly fees or instead simply do not allow a transfer of this kind. If you find yourself in this situation then you can either switch to another credit card company and completely lose the points you built up, or you can instead accept the rewards program you are enrolled in. You will find, however, that many credit card companies are quite flexible when it comes to allowing their cardholders access to various rewards programs, so switching may be as easy as making a phone call to your curent credit card company and making the request. ^ Back to top Visa Rewards Cards Does Visa offer rewards cards that allow me to donate to charity? Visa rewards cards offer an interesting program which allows cardholders to send their rewards directly to charities or schools. Instead of allowing the points to accumulate in an account and eventually get redeemed for airline tickets, cash back, or whatever else the rewards program entails, any rewards earned by the cardholder can be automatically sent to the charity of their choice. This can be a great way for credit card holders to make sure their rewards are being put to good use, and it is also a great way for charities and schools to bring in some extra money. Not all credit card companies allow this option, and, in some cases, the donation to charity has to be in one lump sum instead of on a continual basis. Visa does offer a few cards, however, that allow you to send all of your rewards directly to certain charities or to a particular school. Every purchase you make on the card will result in a donation directly to your charity. You may still encounter higher interest rates and additional fees, just like you would with any credit card rewards program, but if you know that you are doing some good with your rewards then the additional fees may not be as hard to swallow. ^ Back to top Balance Transfer Calculator Should you transfer an existing balance from one card to another? Use this calculator to help determine the best distribution of your credit card debt. Enter your credit card balances, rates and credit limits to find out. · Calculate which balance transfers will produce the greatest savings Note: This information is for general use only. Use this information as part of a full research process. General financial advice does not always apply directly to individual financial matters. Please consult a financial expert with specific and complex questions about your individual situation. Resources: Credit Card Recommender | Free Credit Report & Score | Protect Your Identity Recommend this page to a friend  ^ Back to top

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