With new card offer rates remaining high, consumers are looking past rates when evaluating credit cards. One feature that is starting to catch more attention in helping to determine which card to choose for the wallet is rewards programs. Specifically, credit cards are starting to introduce bonus point deals to help lure consumers toward their card.
Of course, it’s important to read all of the fine print before choosing a credit card based upon its reward program and bonus points. You will want to know if there are any special exclusions and if you will be required to use the bonus points on specific types of rewards.
Are bonus points worth the spending threshold?
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| Introductory Bonus Reward Points Deals © CreditDonkey |
Bonus points can help you earn the rewards merchandise that you are eyeing that much quicker. But, before you can determine if those points are beneficial for you, you will need to examine what your monthly credit card activity typically looks like. This is because you are generally required to spend a certain amount on your new card within a certain period of time in order to earn those bonus points.
If you are required to spend $3,000 within the first three months of card opening, that equals at least $1,000 worth of credit card activity per month. If that amount it significantly higher than you would typically charge to your card in a month, then it might not be the best deal for you. This is because it could cause you to pay interest on the balances charged to your card.
However, if it is merely a matter of changing your payment behavior – like using your credit card for all of your purchases while remaining within your monthly budget so you can pay the balance in full at the end of the month – then it’s likely to be a great deal for you and your lifestyle. After all, you’ll be receiving hundreds of extra rewards money to add to your account for simply making purchases you already planned to make.
Here is the low-down on four credit cards that offer bonus point deals as well as some additional information to keep in mind when choosing a rewards card.
Best Bets
These four credit cards are likely to provide you with the benefits you’re looking for in a rewards credit card:
 | | - $250 gift card - When you redeem the 25,000 bonus ThankYou® Points received after $2,000 in purchases within 4 months of account opening.
- Earn 1 point for every $1 you spend on all purchases
- Receive an anniversary bonus every year you’re a cardmember
- No expiration and no limit on the points you can earn
- Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more
- No annual fee*
| | | | Intro APR for Purchases | Intro APR for Balance Transfer | APR as low as | Annual Fee | | - | - | 12.99% - 22.99% (Variable) | $0 |
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| | - Earn 10,000 bonus points after you spend $500 in the first 3 months - that's $100 toward travel or any other reward!
- 2 points per dollar spent at restaurants & 1 point per dollar spent on all other purchases.
- Points never expire and there are no limits on how many points you can earn
- Redeem points for travel, gift cards, merchandise, cash back and more
- Direct access to expert service advisors anytime
- No annual fee!
| | | | Intro APR for Purchases | Intro APR for Balance Transfer | APR as low as | Annual Fee | | - | - | 15.24% (Variable) | $0 |
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| | - Earn 40,000 bonus points after you spend $3,000 in the first 3 months - that's $500 toward travel rewards!
- 2 points per dollar spent on travel and at restaurants & 1 point per dollar spent on all other purchases.
- Get 20% off airfare, hotels, car rentals and cruises when you book through Ultimate Rewards(SM)
- No foreign transaction fees
- Receive a 7% annual dividend on all new points earned - even on points already redeemed
- 1:1 point transfer to participating frequent travel programs
- Direct access to expert service advisors anytime
- No Annual Fee for your first year - A $95 value
| | | | Intro APR for Purchases | Intro APR for Balance Transfer | APR as low as | Annual Fee | | - | - | 15.24% (Variable) | $95 |
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Should annual fees be a deal breaker?
Consumers have become accustomed to utilizing credit cards that are annual fee-free. But these days, we’re seeing a resurgence of annual fees. Thankfully, these fees don’t have to be a deal breaker when making a credit card selection.
When determining whether to select a card with an annual fee, you will want to evaluate the rewards and bonus points to determine how much they are worth. Look at how you will be receiving on an annual basis in complimentary benefits. For example, if you are receiving a complimentary airfare on an annual basis (and you will actually utilize that plane ticket), the reward should more than pay for the annual fee that you are paying.
Follow @CreditDonkey or write to Meghan Clark at meghan@creditdonkey.com
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Disclaimer: This content is not provided or commissioned by Citi. Opinions expressed here are author's alone, not those of Citi, and have not been reviewed, approved or otherwise endorsed by Citi. This site may be compensated through Citi Affiliate Program.
Disclaimer: This content is not provided or commissioned by Chase. Opinions expressed here are author's alone, not those of Chase, and have not been reviewed, approved or otherwise endorsed by Chase. This site may be compensated through Chase Affiliate Program.
