Finding the Perfect Rewards Card

In the credit card marketplace there are a million and one different rewards schemes out there to attract you to certain credit cards, but how do you find the perfect rewards card for you?

The various different reward cards out there all have their own ups and down. However, some give you a far better deal than others, and the savvy credit card shopper will know what to look for. There are two main types of reward cards available: those that are attached to your credit card and those that are attached to your retailer or a group of retailers. Retail rewards cards can be used regardless of the payment method you use.

Stack of Credit Cards © Andres Rueda

The reward cards that are attached to your retailer are those that are like loyalty cards that you get from your local supermarket or department store. They also come in the form of credit cards, but they must be used in order to gain points. These types of cards haven’t been as prevalent in the rewards card market place of recent years, although they are still out there. They’re cards which you scan at the checkout and get point or discounts. With these types of cards, there is usually not variety. A retailer will usually have their set rewards system and that is it. If they’re free, then you may as well join because you don’t have anything to lose. And you never know you might get a-few freebies along the way. The same goes for credit cards, but they should be used sparingly in order to remain within your budget.

The other type of reward cards are those that are integrated or connected to your credit card, and it is these cards which offer the greatest variety. This is where you, as a customer, need to weigh up the pros and cons of each card to ensure you get the most out of the reward schemes.

When choosing a reward scheme, you need to decide what you want to gain from the reward scheme. Also, what you have to consider is how many points you get per dollar you spend. Ask yourself questions: What is the interest free periods on the credit card that offer the scheme? Do the points expire are a period of time? What are the rewards and how many points do you have to get to obtain these rewards?

These are all things you need to take into consideration when picking your perfect rewards card. You also need to take into consideration things such as transferability of point if you change your card to another provider with the same point’s scheme in place.

If you pick the right credit card for you with the right rewards system, they will give you some real advantages and benefits for participating in these schemes. So whenever you go on the search for a rewards card, you should always weigh up the pros and cons of each scheme when making your decisions, taking into account your own financial needs as you would when taking up any new credit product.

Write to Julie Williams at julie@creditdonkey.com

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