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[C1233]Credit Card Rewards Compare

by Morgan Hamilton, Mor

This is particularly regular in the credit card industry. In fact, it is for this reason why most credit card companies offer different credit card rewards. They know that people will be enticed to sign up for a credit card not just because they need it but also because they want the rewards.

Credit card rewards are already accepted by the public as part of the credit cards. It is, basically, the greatest marketing tool of every credit card company in order to entice people to sign up.

With a growing fierce competition among the card businesses, offering some rewards is the only way to persuade a consumer to use a particular credit card instead of the other one.

In turn, there are many rewards as there are many credit cards in the market today that people do not even realize that many of them are not actually necessary.

Hence, it is important to analyze first the rewards being offered by the card company before signing up. The problem with most people is that just because a particular credit card offers many rewards they tend to get one even if they had enough.

No wonder why the average American household had been reported to have 7 to 10 credit cards in a 2002 survey.

Indeed, nobody can ever question the proliferation of rewards in the credit card industry. It is the credit card company's way of getting a sale, so it should be left that way.

What should be done is for the consumers to know and analyze the kind of rewards they really need. Here is a list of some rewards that people should learn to evaluate if they really need them on their credit cards.

1. Cash back rewards

Many credit card companies offer cash back rewards. These companies insist that they can give their costumers free cash just by using their credit cards every time the customers purchase something.

It sounds like a good idea, but one should bear in mind that most credit card companies could only give “1% cash back.”

In addition, not all purchases have cash backs. In reality, the company will only give cash back to some particular transactions, not all.

What is even worse, some companies give the rewards annually, usually within the date the card has been activated. That would mean a long time to wait for incentives.

2. Freebies

Most credit card companies will offer freebies to their customers. These freebies are usually redeemed once the user was able to accumulate the necessary points. These points are accrued every time the consumers use their credit card for purchases.

After building up some points, the consumers can exchange these for some free items. These things can be pretty useful especially if a person has some need for the item he or she had received.

However, people should keep in mind that freebies and reward points may vary from company to the other. Hence, it is important to evaluate this kind of reward as well.

3. Airline Miles

Some credit card companies offer “airline miles” every time the credit card holder makes a purchase. Accumulated airline miles can be exchanged for some airline tickets.

This kind of reward can be very useful especially if the credit card holder travels a lot. Otherwise, it would not do anything much as a reward.

These are just a few of the many rewards that credit cards offer. All of them can be very beneficial; there is no doubt about it. The only drawback is when the customer has no use for it.

Therefore, it can be concluded that credit card rewards are only true to those who can benefit from it. Otherwise, rewards are not rewards but plain marketing strategy on the run.

Ever since the Discover Credit Card first started offering cash back on purchases credit card issuers have been beating each other's brains out to get your business. Credit card rewards now come in all shapes and sizes, and some credit cards can get you to those rewards faster than others. Whether it's air fare, theater tickets or anything else you're after, there is probably a reward credit card available that can help you get it free.

In order to take advantage of a credit card that offers rewards there are several things that you should keep in mind:

* Do you maintain a balance on your credit cards? If you aren't in the habit of paying the complete balance due on your cards every month, then you seriously need to consider whether a reward card is the right thing for you. It doesn't take much of an outstanding balance at all for interest to outstrip any rewards that you might gain through credit card rewards. Look instead for a low interest credit card.

* Make sure you understand the currency. The currency of rewards credit cards is points, and they're usually awarded one or two per dollar spent on the card. There are other ways, such as air mileage points, to earn points on your card. Make sure you understand how many points are needed to get to the reward you want and how you can earn those points fastest given the terms of your credit card agreement.

* Check to see if points expire. While airlines have begun to offer their customers points that never expire, some credit cards still give you points that are use-it or lose-it. It may take you a long time to qualify for some of the higher point valued awards, so look for a card that offers points that don't expire.

* Know which purchases give you the biggest reward for the buck. Some purchases will net you more points than others, and some purchases might not net you any points at all. Many airline rewards cards offer point bonuses for purchases of air travel. Some American Express cards offer double points for purchases of gas and groceries. Make sure you understand the credit card agreement and pick one that will maximize your receipt of points given your spending habits.

* Pay your bills - with your rewards credit card. This is one fast way to acquire points fast. Many household bills can be paid with your credit card, and you can receive points back. Gas, heating oil, cable, groceries - the list goes on, but you get the idea. See how many of your household bills you can pay with your credit card. You can always immediately write a check for the same amount and mail it to your credit card company to cover the bill.

* Make sure you get a good sign-up bonus. Most rewards credit cards offer bonus points just for signing up and getting accepted. Usually the points are available after you make any purchase with the new card. Make sure you choose a rewards card that offers the most up-front points - you can often get close you your first reward just in bonus points!

With my big family, paying household bills allows me to qualify for credit card rewards once every two or three months. This is huge, because I go for air travel, and credit card awards afford me the opportunity to travel at times when I wouldn't if I had to purchase a ticket. For me, that's worth more than the money. Try it - optimize your rewards credit cards, use them whenever you can, and it'll work for you too.

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Both Morgan Hamilton & Michelle Lefeaux are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Morgan Hamilton has sinced written about articles on various topics from Credit Cards, Women and Guided Meditation. . Morgan Hamilton's top article generates over 201000 views. to your Favourites.

Michelle Lefeaux has sinced written about articles on various topics from Credit Card Interest Rates, Credit Cards. on-line is the easiest and most comfortable way to assure that you get the right credit cards. Please browse our site to shop for the best. Michelle Lefeaux's top article generates over 1600 views. to your Favourites.