With that in mind, here are a few of the factors you may want to consider when looking
for a rewards credit card that will work best for you:
1. What kind of rewards do you want?
There are generally three types of rewards cards available to you: those that give
you back points, miles or cash back for every dollar you spend. Finding the best
credit card deals for you is a question of understanding how you will use your credit
card.
For instance, if you think it would be nice to have a little extra money in your
pocket at the end of every year, maybe you should get a
cash back credit card. Alternatively, if you want to earn access to exclusive
items and experiences that you might not be able to get otherwise, a
points credit card will likely serve you better. Finally, if you fly regularly,
an
airline rewards card that grants you miles you can redeem for airline tickets
and other travel perks may be more beneficial than the others.
2. Can you get incentives?
When it comes to actually earning the rewards, though, there are other factors that
will determine the best credit card for you.
Some cards now grant consumers more points, cash back or miles for every dollar
they spend in certain categories. For example, many cash back cards now give double,
triple or even five times the points for spending at places like grocery stores
and other necessities, depending on the account. In other cases, points cards might
give you added points for reaching certain spending thresholds within a few months.
In addition, most airline cards will give you more miles if you use the account
to book travel arrangements.
If you review your old transactions to determine where you use your cards most often,
you might be able to unlock more benefits by finding a credit card offer that rewards
your previous habits.
3. What are the restrictions?
In many cases, there might be some restrictions on rewards you can earn.
Some cards might have points or miles that expire within a certain amount of time,
meaning you might not be able to use all the rewards you rack up. Others might only
grant bonus points for purchasing from certain companies.
4. What are your spending habits?
Rewards cards tend to come with higher interest rates and annual fees than cards
that have no frills, which you may be more accustomed to handling. As such, if you
regularly carry a balance from one month to the next on your existing accounts,
you might want to do some math and figure out if the use of this card will actually
end up costing you more than you earn back.
If so, perhaps it's time to change your borrowing habits, spending less on the card
every month and increasing the value of your monthly bill payments.
Balance
transfer credit cards are another option. They offer low APRs on balances
and sometimes on new purchases. This can reduce the interest you pay every month
and give you the chance to pay down your balance. If you choose this option, you
should be careful however, to use the money you save on reducing your debt and not
blow your potential savings on new purchases.
If you're not sure what credit card may work best for you, use our
Credit Card Search Engine. It will match you with selected credit card offers
that fit your credit profile and needs so you don't waste time applying for cards
that don't match your purposes.
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