Reward Credit Cards – Applications All Types
Once your credit score hits a certain point, you’ll start getting offers from reward credit cards. However, only when your credit score hits excellent will you get the best rewards card rates. This is around 720, but you’ll start getting offers before you get to this level.
Reward credit cards vary from straight cash back, travel, airlines, and rotating categories. You’ll have to decide which card is going to work best for your spending habits. However, there are a few things you want to get, no matter what type of rewards cards you choose.
Look for a Reward Card That Offers a Bonus When You Sign Up
Not having an annual fee for the first year is very common for rewards cards today. So, you want to look for cards with more. Good reward credit cards come with a credit card signup bonus. It can be a great incentive to get a new card. Usually, you have to spend between $300 up to over $1,000 within three months to get the bonus. This bonus usually comes as a statement credit, and the higher you get, the better it is.
Travel rewards cards are also fiercely competing for your business. A typical introductory offer is around 30,000 miles. This works out to about $300, and it’s usually a round-trip ticket. However, you want to check for restrictions or blackout dates.
Regular rewards cards offer cashback that ranges from one percent up to five percent. Usually, it’s one or two percent for everyday purchases. The five percent is typically limited to rotating categories. If you don’t mind keeping track of the categories, you can cash in each time they rotate.
Decide What Type of Reward Credit Cards Works With Your Spending Habits
Decide on which type of reward credit cards works for your spending habits. Then it’s time to look at how you redeem your rewards. Some cards offer statement credits, gift cards, or straight cash back. Airline or travel cards usually offer points or miles for their rewards. Consider the reward earning potential of gas cards and shopping credit cards.
Another thing to consider is unlimited rewards or do they cap? Do you have to redeem them at a certain point during the year? You don’t want your rewards to expire. You also want to pay attention to any minimum amounts you need to redeem them.
Finally, consider your payment history. Some reward credit cards will dock your points if you miss a payment. Other cards have missed payment forgiveness, and they won’t take any points. It’s up to you to choose a card that suits your lifestyle and spending habits. You can earn rewards just by using your new rewards card responsibly.
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