Rewards Credit Card ? How to Find the Best One for You

Posted by Nick Niesen on October 29th, 2010

Of all the credit card options available to you today, rewards credit cards are wonderful way to get something back for everything you spend. A rewards credit card comes in many different forms, from a variety of financial institutions, and with a number of reward offer options. In order to find the best one for you, you will need to do a bit of research and put some thought into what will pay off the most for you and your family. The best rewards credit cards will give you back something you really want without doing anything more than spending as you normally do every day.

How Rewards Credit Cards Work

You will find a wide assortment of rewards credit cards. Each one offers a different type of reward, but most of them work in a similar fashion. As you spend money with your credit card, you earn a specific number of points or rewards points per dollar amount. Most companies offer a basic one point per one dollar system.

However, you can also get some bonus points for various transactions. Perhaps your financial institution is affiliated with some large chain stores. You could get bonus points, such as five points per dollar spent, when you do business with these selected merchants.

For another rewards credit card, you might earn mileage toward a vacation. Some airline affiliated cards offer you a certain number of miles per dollar spent. When you accumulate a specific number of miles, you can apply them toward the purchase of a ticket with that airline.

Types of Rewards Cards

Again, the best rewards credit cards are those that suit your lifestyle. If you travel a lot, then an airline rewards credit card would be great for you. You can charge all of your regular purchases and get the airline miles you need to travel any time of year. But be careful that you read the fine print well. Some credit cards give you reward miles that are only good during a certain period of time or to specific destinations.

There are other travel cards that take advantage of Disney packages. You charge your purchases to one of these credit cards and you can earn reward points toward a Disney vacation of your dreams.

Of course, the most common type of rewards credit cards is the one that allows you to use your rewards points in any number of ways. The company that issues your card makes a deal with other merchants, and you can use your points as you would use cash at these merchants. Most of these rewards categories are gift certificates or other set amount items. For example, if you have four hundred reward points, you might be able to get a ten dollar gift certificate at your favorite restaurant, electronics store, or department store.

Still other cards allow you to earn points that transfer into money donated to a charitable cause of your choice. This is a great way to give back to your community or to the world without missing anything in your pocket.

Overall, the best rewards credit cards are those that have a low interest rate and give you back something you can really use.