GET PAID TO SHOP : USE REWARDS CREDIT CARDS CORRECTLY AND REAP THE REWARDS
If you are putting thousands of dollars on your charge card each month, are you earning reward points on every dollar you spend? Very few things in life are truly free, which makes credit card rewards even sweeter. Rewards credit cards allow you to earn money, discounts, air miles, prizes, and more, just for using your credit card – something you probably do everyday anyway.
Overview
From free hotel stays and flights to auto discounts, gift certificates, gasoline rebates, cash back and more, rewards credit card programs have been designed to give back a little of the financial burden of spending. Most if not all major credit card issuers offer reward credit cards that allow consumers to feel better about their financial situation because at least a portion of what they spend comes right back to them.
Credit card issuers present countless rewards credit cards and programs, tailoring a variety of them to interest different consumer groups, or at least those who prefer one company or product to another. From free sandwiches to free movies and more, some individual merchants and retailers actually team up with the issuer to offer a special rewards-based credit card for their own customers.
In addition to enticing consumers with a worthwhile rewards program, these credit cards may offer low interest and low APR rates, as well as other benefits that may impact how much money a consumer can save. Cardholders typically earn rewards ranging in the amounts of one percent through five percent of all purchases.
Consumers may receive their rewards automatically in the form of a gift certificate mailed to their home, or they may have to request their reward when they are ready for it. Rewards credit cards make it easy and convenient for cardholders to pay a lot of their bills by credit card, especially when they know a percentage of the cost will be coming back to them.
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Compare Rewards Credit Cards
With so many rewards credit cards out there, it seems like an unwieldy task to select the best one. That’s why Frankford Financial scoured all the offers and narrowed down the list to include only the very best credit card rewards programs. You’ll find them all on this page without having to do an ounce of searching yourself. Just browse the offers at the top of this page and compare the terms that you find most important to you.
How to Select a Good Rewards Credit Card
Selecting a good rewards-based credit card can be much like making a major purchase on a new computer, digital camera or even a new car. You must compare every detail to make sure you will be happy and comfortable with your decision.
You also want to maximize your rewards, so consider where and what your biggest expenses are. If you spend more time and money at the pump than anywhere else, a reward credit card with a gasoline rebate is definitely for you. If you travel a good deal on business or even for personal enjoyment, a credit card that offers rewards of free hotel stays and free airline tickets may be the most beneficial to you.
New rewards programs are available all the time, with such enticing offers as Disney® rewards, home improvement points and even mortgage rewards. Analyze your lifestyle and your average shopping needs to help you determine which rewards program will provide you the most benefit.
What to Look for
As you compare and contrast the different rewards credit card terms and offers on this page, your main focus may be on the types of rewards you can receive. Decide if you would prefer free flights, hotel stays, gift certificates, cash back or something completely different as you select the rewards program that best suits your needs.
Once you have an idea of the kind of reward you hope to receive, delve into the descriptions and compare the interest rates on this page. Discover whether an annual fee is involved and learn about all the other terms and conditions of the cards.
As you compare reward cards, don’t forget to consider other factors like:
• Interest rate
• APR
• Annual fee
• Finance charges and other applicable fees
• Grace period
• Expiration of rewards
• Restrictions and limitations
• All the other fine print
When you compare and contrast credit card rewards programs:
• Find out the limitations and restrictions that apply to the card prior to swiping it for the first time.
• Make sure that the traditional terms of service are agreeable to you – APR, interest rate, finance charges, annual fee, etc.
• Investigate whether your reward points will expire if you do not spend them for a prolonged period of time. How many points can you earn in a calendar year?
• Find out if you will receive any special services like online account statements, free fraud protection, bonus points or discounts, etc.
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Credit Card Rewards Programs - THE BIG 4
Frankford Financial is the one-stop shop for finding the best rewards credit card offers. The four top rewards card issuers are outlined below, with a general synopsis of each credit card rewards program and a link to additional information.
Citi® – Citi’s reward program, The ThankYou Network (sm), provides a wealth of rewards that are easy to achieve. At least one ThankYou point is issued for every dollar spent, and cardholders may cash in rewards at 1,000 points. Consumers may earn a maximum of 75,000 points per year that they can cash in for travel, merchandise and restaurant rewards. Citi’s ThankYou Merchants program provides another way to enhance reward point earnings, with up to 10 extra points tacked on when the cardholder shops at participating stores and Web sites.
American Express® - The Membership Rewards® program from American Express offers cardholders the chance to earn free hotel stays at major hotel chains, free air miles from a variety of airlines, adventure travel vouchers, rental car certificates, resort vacations and more. Cardholders earn one point per dollar spent, with bonus, double and triple point opportunities to speed up the process. Consumers can redeem points once they have accrued 400, and points carry no expiration date, so they can be saved up for larger prizes.
Chase® – With savvy shoppers in mind, Chase presents a rewards program tailored to the smart consumer with special interests. For example, Chase offers the Home Improvement Rewards (sm) Credit Card, which allows cardholders to accrue three points per dollar spent on home improvement purchases, and at least one point per dollar spent on everything else. Also available is the Universal Entertainment MasterCard from Chase, which presents cardholders with four free movie passes after their first purchase. This program allows reward redemption at 900 points.
Discover® – Choose from cash, gift cards and travel with Discover’s credit card rewards program. Cardholders can earn one mile per dollar spent, up to a total of 60,000 miles per year. Airfare rewards equate to $100 for 10,000 miles, so cardholders may earn up to $600 per year in free airfare. Air miles are redeemable for any seat on any airline, with no blackout dates. Miles may expire if the consumer does not make at least one purchase every 36 months. First-time cardholders receive 5,000 bonus miles with their first purchase.
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Benefits of Rewards Credit Cards and Rewards Programs
Depending on the reward credit card’s terms, the cardholder may earn anywhere from one percent to five percent or more on specific products or store brands, and sometimes even on all purchases.
Rewards credit cards allow consumers to accumulate reward points, which can then be cashed in for prizes, discounts and freebies, not to mention cash back. Some credit card rewards programs may impose limitations or restrictions on the number of points or rewards one particular cardholder can amass, although many do not limit a cardholder’s reward potential. Read the fine print of the terms of agreement to learn whether your preferred card imposes any restrictions.
Though the rewards vary for each different credit card offer, many cards allow cardholders to earn:
• Free flights
• Free hotel stays
• Gift certificates
• Free movie tickets
• Free meals, sandwiches, etc.
• Discounts on products or services
• Mortgage principal
• Cash rebates applied to the credit card balance
• Cash rebate checks mailed to the cardholder’s home address
Many rewards credit cards offer flexibility in the form of tender in which the rewards are presented, such as instant rebate, rewards check, gift certificate, and so forth. Some rewards cards also waive balance transfer fees during the introductory period and require no annual fees.
Additionally, credit card rewards programs may provide these benefits:
• Earn back money doing something you do all the time anyway.
• Earn greater rewards on specific purchases, like gasoline, groceries, utilities, etc.
• Participate in sweepstakes for chances to win other great prizes.
• Build good credit as you strive to pay off every month’s bill in full, on time.
• Maximize your savings and earnings by using coupons and purchasing items with mail-in rebates.
To make the most from your credit card rewards program, simply pay off your balance as fully as possible, or you’ll defeat the purpose of your reward earnings. Finance charges, interest payments and late fees add up very quickly.
Summary
Many different credit cards offer different terms, but the truth is that every consumer who does not carry a balance should have at least one rewards credit card in his or her wallet. Rewards cards and credit card rewards programs provide an easy way for consumers to save a little money without making any additional efforts.
Frankford Financial has taken the guesswork out of selecting the best rewards credit cards and programs, and we’ve listed them right here on this page. You’ll find valuable information on the best rewards cards available on the page and throughout the rest of this comprehensive article.
Also, feel free to contact us if you have additional questions about reward credit cards or rewards credit card programs.
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FAQ
What fees might I incur?
As with any credit card, you may wish to read the fine print to learn about the specific fees you might incur. Take the time to learn about any fees that may apply to your account before you sign up so that you are prepared.
As with most credit cards, some of these fees may apply:
• Annual fee
• Balance transfer fee
• Cash advance fee
• Finance charge
• Foreign currency transaction fee
• Late fee
• Over-the-limit fee
What restrictions may apply?
Oftentimes, the fine print of a credit card agreement may make mention of certain terms that are not clearly stated with the general terms. In some cases, certain purchases may not allocate reward points to your rewards card account. Additionally, many credit card rewards programs allow cardholders to accumulate only so many points within a certain time period.
Be aware of these possible limitations and restrictions:
• How many total points in a calendar year can you accumulate? (And, what does that total amount equal in cash, hotel stays, airline tickets, etc.?)
• What merchants are excluded from the rewards program, if any? In some instances, purchases made at warehouse stores, discount stores, convenience stores and department stores may not apply. Read the terms of agreement to determine your card’s limitations.
• Cash advances, convenience checks, balance transfers and other specialized services may not allow accumulation of credit card rewards points either.
How does the application process work?
As with most conventional credit cards, you can apply for rewards credit cards directly online at Frankford Financial. Many times rewards credit cards require that the applicants have a good to excellent credit rating. Additionally, these cards will require cardholders to maintain responsible behavior when it comes to making timely payments and staying within the credit limit. To keep the low APR and rewards program active, consumers will need to make a conscious effort to pay all minimum payments on time.
To qualify for most rewards credit cards, you must meet two basic requirements, i.e. - confirm that you are at least 17 years of age and provide a valid Social Security Number. Additionally, you may need proof of employment, an idea of gross yearly household income and very basic banking information.
We have done the work for you in singling out the best rewards credit cards for you on this page. Have a look around and compare the offers to discover the rewards credit card that best suits your needs.
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Our Best Rewards Tip pays you to shop !
Did you know you could really maximize on the rewards you earn by using your rewards credit card for every single purchase possible? The key to making the most of your rewards program is to use your rewards credit card in conjunction with the checkbook that you use to pay your monthly bill. After every purchase you make with your rewards credit card, record that purchase in your checkbook as a debit.
At the end of the month, you won’t have to worry when the bill comes due because you’ve debited the charges in your checkbook register after every purchase all along. In fact, you’ve already accounted for the entire amount necessary to pay off your balance, so when you pay the bill, it won't hurt a bit. Some of our customers even pay their mortgages and car notes with their rewards credit cards to maximize savings. If you're spending $3,000 per month, you could be getting $150 of that back in your pocket!
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Find more Rewards Cards Offers & Articles
• The Best offers are on this page but you'll find more Rewards Cards in their respective categories :
Navigate using the left menu to find Airline, Travel, Hotel, Resort, Gasoline and Business Cards with rewards.
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Kathryn M. D’Imperio, Analyst, Frankford Financial ©2008
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