There are times when a credit card is more than what it appears on the surface. This is typically the case with a points reward credit card, as you are getting something in return for every dollar you spend. Before you choose just any points reward credit card, here is something to remember: every credit card company offers several of these, so it’s important to compare the finer details, benefits, and drawbacks of each one.
With the ability to earn reward points for card purchases, you will feel more inclined to use your plastic every chance you get. As long as you are comfortable with how much you are spending, as long as you can afford your purchases, there is nothing wrong with this.
What Does a Points Reward Credit Card Get You?
The best way to decide for or against a points reward credit card is to understand what you are getting in exchange for purchases. Here are five things to keep in mind:
1. Earn points for every purchase. If nothing else, you want to understand that you can earn a point for every dollar you spend. This gives you the opportunity to collect points with each purchase, eventually redeeming them for something that piques your interest.
2. The option to earn more than one point for each dollar spent. This may not be something you are expecting, but it could work in your favor if you choose the right offer.
For example, some points reward credit cards give you double points for every dollar you spend on gas, groceries, or restaurant purchases.
For instance, there are points reward credit cards that give you 50,000 free points if you spend a minimum amount of money during the first three months after opening an account. Yes, this is an incentive to use your credit card. But as long as you were going to do so anyway, you might as well collect the points.
4. Know what you can get for your points. It is not good enough to collect points, month after month. You need to understand what the points can be used for, as this will give you more reason to continuing using the card.
Most people enjoy points reward credit cards that allow them to cash in points for travel perks. This can include but is not limited to air travel, hotel stays, rental cars, and more.
5. The fine print. Just the same as any credit card, these often have fine print. When will your points expire? Are there blackout dates? Can you transfer your points? These are the types of questions to answer. Not only can you ask direct, but you can typically find information in the fine print.
Tip: don’t sign up for a points reward credit card until you are 100 percent sure that you understand what you are getting.
Are there Fees?
There are points reward credit card that have no annual fee. If you don’t want to pay for access to a particular offer, this is the type of card you are looking for.
There are also others with an annual fee, and here is what you need to consider: you may get more out of your credit card if you are paying a fee once per year.
As long as you understand the annual fee and when it is charged, you will never be surprised.
There are other fees associated with most credit cards, such as those for a late payment or making a balance transfer. You should fully understand these fees, as to avoid an unwelcome surprise down the line.
How to Compare Points Reward Credit Cards
It’s a common belief that most points reward credit cards are one in the same, but as you dig deeper you will find out that this is not true.
Use these three tips to compare credit card offers:
Focus on the reward program details, as this is the main attraction of each credit card.
Don’t overlook any downfalls, such as a high interest rate or costly annual fee.
Use the internet, as this can give you a side by side comparison of what each credit card has to offer.
A Final Word on the Points Reward Credit Card
Points reward credit cards are more popular today than ever before. A growing number of consumers have come to realize that they might as well get something in return for using their credit card.
With so many points reward credit cards to choose from, you should be able to find one that suits your personal approach to shopping as well as your financial situation. Make sure you compare many offers before applying.