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How to Choose the Right Rewards Credit Card
If you are an honorable and smart credit card user, you should choose a credit card that rewards YOU for being a consistent and loyal customer. There are credit cards that offer cash back to you, discounts on purchases, and even valuable free merchandise and services. But what are “rewards,” and how do you choose the right rewards card for your needs?
What are “rewards” cards?
If you’re a good credit card user, there is no doubt that you receive 2 or 3, or even dozens, of credit card offers every week, many of them offering “rewards” every time to use the card. What are rewards exactly? Credit card companies encourage you to use their card often, and for each dollar you charge, you are awarded points that are redeemable for goods or services, or even a percentage of your purchases qualify for cash back!
The points you earn are usually good for items or services such as plane airfare, free gasoline, free merchandise, or even in some cases, a big item such as a free car. But you must choose a card that works for your family’s lifestyle and needs, and use the card wisely so that the bonuses you receive are worth the use of the card.
Free airfare
Most people are familiar with “frequent flyer miles” that are accumulated and redeemable for free flights (some restrictions may apply). Many credit card companies offer points toward your frequent flyer miles when you make purchases with your credit card. Are you a frequent flyer? Do you like to travel for vacations or to visit family? Then a frequent flyer rewards card may be right for you.
Free gas, groceries, or restaurant meals
Some rewards cards will offer free coupons or gift cards for necessary items, such as gasoline or groceries, and even free meals at your favorite restaurant. Using your credit card to build up points for these necessary household and automobile items is a great way to save money in your budget.
Free merchandise
Do you like to shop? Perhaps a rewards card that offers free gift cards to your favorite shopping stores is right for you. Some credit card companies may offer free gift cards to department stores such as Sears or Bloomingdales, or even to fine upscale stores such as Nordstrom’s or Tiffany’s.
The secret of rewards cards
To get the full value of using a rewards card, it should pay YOU for each use. Make sure you choose a rewards card that offers no annual fee. And at the end of each month, pay off the balance in total so that there are no finance or interest charges on your account. With this strategy, you are not paying anything for the use of the card except the cost of a stamp to mail your check. When your rewards become redeemable, your credit card company has paid you to use their card.
Whether you want a trip across the country to visit family or a trip across town for some great free shopping, you have the ability and the leverage to choose the rewards credit card that works best for you.
Write to Grace Carter at grace@creditdonkey.com
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