Reward Credit Cards
Reward credit cards earn you points on your purchases. These points add up and
can be exchanged for rewards (which is why they are called reward credit
cards). The rewards can vary a lot. Often there are many gift cards (home
improvement stores, grocery stores, department stores, restaurants, etc.),
merchandise, (luggage, electronics like digital cameras and MP3 players,
watches, etc.), travel (airline tickets, car rentals, hotel vouchers, etc.),
and they may even allow you to exchange your points for a check that you can
cash at your bank. If you have a particular reward you want make sure the
credit card you are considering offers it since each company offers different
rewards.
Things to Look for
If possible, check out a credit card’s reward center before applying for the
card (can usually be found on the credit card’s official website with a little
navigation, the site map should help). This way you can see how many points you
need to earn the reward you want and then compare that with the amount of
points you get per dollar spent. If you can do that with all of the reward
credit cards you are considering you can then determine which one will get you
the reward you want the fastest. Then check the details of that card to make
sure it will work for you. You should look for no annual fee, 0% liability on
unauthorized purchases, and a low APR (interest rate). If the APR is
introductory be sure to check what it will be after the introductory period is
over.
Travel Reward Credit Cards
Be aware that travel reward credit cards only will get you travel rewards. Other
general rewards credit cards will have more selection of rewards. However, if
you are looking to earn travel rewards then this would be the best for you.
These tend to offer more flight, hotel, and rental options than a general
rewards credit card would. There will also be more days available to travel
(fewer black out dates). The perks of a travel only card could be enough to
convince the frequent traveler to forgo a general rewards card.