One of the great perks of using a credit card are the rewards that they offer. So let’s assume that with everything else being equal we wanted to find out what the best credit card rewards are. And in order to do that you must first ask yourself what is most important to you as an individual.
Our finances, much like our personalities, should never be managed with a one-size-fits-all mentality. What I mean by that is that what may be advantageous for one person may not be so great for another. Rewards programs offered through banks and financial institutions very much fall under this umbrella.
Know Thyself
In order to find the best credit card rewards for you you must analyze your lifestyle and how, if at all, you would utilize the rewards given. Of course, if you are a traveler would probably want to check out cards that offer airline miles. There are also gas rebate rewards and cards that specifically offer perks and bonuses for staying at certain hotels such as the Starwood card from American Express.
Another form of rewards are cash rebates. These have become the most popular in the past few years no doubt because the recession has so many people watching every penny they spend. If you pay your card off every month then cash back rewards are a great way to save money on the purchases you make each and every day.
What Are Your Rewards Costing You
Notice how I said if you pay your card off every month. The thing about rewards cards is that if you carry a balance then the interest you’re going to pay will offset any savings or value you will get in return through a rewards program. That’s a very important distinction that many people fail to make.
Another important point that you must take into account is that now that credit card reform has become law many banks and financial institutions are scrambling to think of new ways that they can raise revenue from their cardholders. One such way is by charging annual fees and annual fees are usually the highest for rewards credit cards.
The Devil Is In The Details
I believe you are getting the point here. It is absolutely imperative that you study the terms and conditions of each and every offer that interests you before you apply. There is a cost for every rewards program on the market but many times that is hidden behind a slick sales pitch and attractive bells and whistles.
By all means do your homework and understand exactly what the interest rates are and what fees accompany the offer you are interested in. And be sure that you compare cards from different issuers because they can be very different indeed when you take into account all the features, benefits and costs associated with them.
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