HomeA good credit reward card can contribute to your retirement account, offer gas rebates, score theme-park or vacation tickets or take thousands off the price of your next auto purchase. Rewards at hotels, airlines, and retailers bring more to the possibilities but, adds to the confusion. Here are some tips to find the best reward programs for you to increase your buying power.
Who should apply for reward cards?
It used to be that if you pay off your balance each month, reward cards are definitely worth considering. But now, many have come out with very competitive interest rates below 10 percent, so if your credit is good enough to qualify, you need not necessarily discount a rewards card, unless it hinders you from paying down your balance in any way.
Invest some time to maximize payoff
Anyone who wants to get the best deal must patiently compare offers, then manage them consistently afterwards. Scrutinize spending to give maximum rebate value for the dollar.
Flyer miles
Frequent-flier miles were the first comers of the rebate credit cards. They typically value at 1% to 2% rebate or one mile per dollar spent, so choose the ones that offer the highest return. For a comparison list of airline mileage cards, see SpyFind 's Airline Rewards Finder.
Some airline cards have a 'use it or lose it' policy, as do many 'travel rewards' or "hotel rewards". If it will take you a long time to earn your reward, you will want to make sure it will be there for you. American Express, for example, has programs that never expire and provides miles that, can be used on a number of different airlines. If you travel different airlines but need a Visa or MasterCard (accepted by more merchants), you can choose a bank-issued 'travel awards' card.
About auto rewards
'The 'car cards,' for example, tend to be the most generous reward cards in terms of what percentage rebate you earn -- but the reward has its limits. The GM Card lets you earn 5% toward the purchase or lease of one of its vehicles, but then yields how much you are allowed to apply to a given vehicle. Only $1,000 in rebate awards currently can be redeemed on a new Hummer or Corvette, for example, while $3,000 can be used to purchase a Silhouette minivan', according to Liz Pulliam Weston of MSN Money. See, SpyFind's Auto Rewards Finder.
If you want more freedom in the type of car you would like to purchase then consider the CitiDriver's Edge Platinum Select Card, which gives you a 1% rebate, up to $500 per year, toward the purchase of any new or used car.
You can always swap to another card rebate program after you have reached the maximum reward to keep the discounts and continue to charge more.
Calculate your spending to make the rewards worthwhile
If you charge $3,000 a year on a card that costs $45 annually, for example, it will take over 6 years to earn a free airline ticket with most cards. In that time, you will have paid $270 in fees -- enough to buy a discounted air ticket on your own.
Get cold hard cash
The easiest way to accumulate true savings is by taking advantage of no-fee cash-back cards. You will want to choose a card that gives you at least a full 1% back; such as, Chase Platinum PerfectCard. Or, 5% to 10% with increased spending or used with participating merchants and retailers; such as, Blue Cash from American Express. See SpyFind's Cash Rewards Finder.
Also, retail reward cards, provide higher rates of earning at in-store shopping. The Toys R Us Visa, for example, has no annual fee and its 1% cash back rises to 5% when you use it to make purchases at any Toys R Us.
With ever increasing gas prices, you can receive higher rates of earnings at gas stations. Through the Chase Platinum PerfectCard reward program, cardholders earn a 3% rebate on all gasoline purchases. See SpyFind's Gas Rewards Finder, for more.
Entertain yourself
Disney and Universal have credit cards that give you points toward theme-park tickets, movies and other great stuff.
For greatest flexibility, the cleanest reward is "cash back"'not a gift certificate but real, use-anywhere money.
About the author: James Banks serves as valuable team contributor to the SpyFind Information Network, SpyFind.com.
Areas of expertise include both credit and financial advice. To view more related material, vist SpyFind's Credit Center,
http://www.spyfind.com/ credit.html
