You should be very choosy when opting for rewards credit cards, just like you shop for other commodities. Credit card companies want to sell their services and sometimes even tend to trick you to opt for their services. They may offer low introductory rates (sometimes even 0% interest on purchases for the first 6 months), gas rewards, frequent flier miles, cashback and points toward the purchase of travel packages. However, there are many things other than discount offers you need to look for while opting for rewards credit cards. When you are choosing a rewards credit card, do not just look for interest rates and terms. You should find a card that offers you the type of rewards you are most likely to use.

Travel Credit Cards
Travel credit cards might be the best option for you, if you travel very frequently using airways, or stay in hotels for long periods of time. You can get airline miles credit cards that will add points to your credits when you use the service of a particular airline. Airline miles credit cards are the best rewards credit cards, which are available for a longer period of time.

Hotel Rewards Cards
Hotel rewards cards can probably save most of your money, because very often the cost of your stay at a hotel is much more than your air ticket. These credit cards will help you earn rewards for your stay at a particular hotel or add points to your credit. A few programs, like the American Express rewards program, let you choose your rewards for the points collected, which may include travel expenses, including flight charges, and works just like the airline miles credit cards.

Cashback Credit Cards
Cashback credit cards award you points when you spend money on purchases, or for making other bill payments. The higher your balance and the faster you pay, the more rewards you will get. A few cashback credit cards are designed in a way that the more you buy with the card, the more your reward will be. Some cashback credit cards do award more points for certain purchases, but almost all of them have some reward for any type of purchase.

Airline Miles Credit Cards
Airline Miles Credit Cards are becoming popular among travelers. They are an ideal choice for frequent travelers, whether they travel for business, work or other reasons. For every purchase you do with these credit cards you will earn points, which can be used for free travel. The earned points can also be used for merchandising. There are bank-sponsored credit cards, as well as airline-sponsored credit cards to choose from. But before making a purchasing decision, you have to make sure that the card provides maximum benefits.

Gas Credit Cards
Gas credit cards are now a popular option. These rewards credit cards give you a certain number of points for every dollar you spend on gas. Those points give you cashback rebates. They are more like cashback credit cards that reward you for the amount you spend on gas. Some gas credit cards also offer you reward points for other purchases at places like gas stations and drug stores.

Many rewards credit cards are a combination of one or more types. Gas credit cards typically offer cashback rewards for more than just gas purchases, but the points may be very minimal when you use them for other payments. Some travel credit cards may also have cashback options. If you have a very good credit rating, you will have your choice of rewards credit cards, so pick the one you will be able to use the most.

Related Articles
  1. Credit & Loans

    Credit Card Review: Chase Freedom

    Learn about the Chase Freedom card and how it earns 1% cash back on every purchase and up to 5% on purchases in quarterly categories.
  2. Credit & Loans

    Credit Card Review: BankAmericard Travel Rewards

    Understand what the BankAmericard Travel Rewards card is and what its benefits are. Learn about the few drawbacks to the BankAmericard Travel Rewards card.
  3. Credit & Loans

    Credit Card Review: BankAmericard

    Examine an overview of the credit card lineup offered through Bank of America, each of which is a different version of the BankAmericard.
  4. Investing Basics

    How Southwest Airlines Has Won Over Travelers

    Understand what Southwest Airlines' competitive advantages are and how they manage to edge out other airlines.
  5. Economics

    What Happens in a Default?

    Borrowers are in default when they don’t honor a debt, whether their failure is intentional or not.
  6. Savings

    Best Places To Exchange Currency In Miami

    Miami may be a 24-hour party, but it takes plenty of cash to get in the groove. Here's where to exchange foreign currency before you head for South Beach.
  7. Budgeting

    The 7 Best Ways to Get Out of Debt

    Obtain information on how to put together and execute a plan to get out of debt, including the various steps and methods people use to become debt-free.
  8. Savings

    Best Places to Exchange Currency in Chicago

    Whether you're leaving the Windy City or arriving with a stack of foreign cash, these are your best bets for currency exchange.
  9. Credit & Loans

    Don't Get Burned by High Credit Card Rates

    The average card charges 11.8%, and some rates top 20%. Experts warn that credit card interest may remain steep.
  10. Personal Finance

    Worthwhile Rental Websites (Besides Airbnb)

    The world is your accommodations oyster, thanks to a host of new vacation-geared platforms.
RELATED TERMS
  1. Transferable Points Programs

    With transferable points programs, customers earn points by using ...
  2. Luhn Algorithm

    An algorithm used to validate a credit card number.
  3. Roll Rate

    The percentage of credit card users who become increasingly delinquent ...
  4. Truncation

    The requirement mandated by the FTC for merchants to shorten ...
  5. Purchase Money Security Interest ...

    A security interest or claim on property that enables a lender ...
  6. Linked Transfer Account

    Accounts held by an individual at a financial institution that ...
RELATED FAQS
  1. What are some tips for getting the most out of my credit card rewards program?

    The best way to get the most out of a credit card rewards program is not to carry a balance on the card or miss a payment, ... Read Full Answer >>
  2. What are some examples of common credit card reward program benefits?

    As of 2014, there are almost as many different rewards programs are there are credit cards. Common benefits offered include: Air ... Read Full Answer >>
  3. What are some common catches that come with credit card reward programs?

    The most common catch of credit card reward programs is using the credit card and paying interest on purchases rather than ... Read Full Answer >>
  4. Are credit card rewards taxable?

    Credit card rewards are taxable in the United States some of the time. The Internal Revenue Service (IRS) classifies credit ... Read Full Answer >>
  5. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  6. What is the best way to start to rebuild your credit after a bankruptcy?

    Bankruptcies can be devastating to your credit score. Even worse, a bankruptcy will be listed on your credit report for between ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!