Choosing Reward Credit Cards … What Exactly Are The Things To Look For?

You will most likely notice that rewards on credit cards come in two versions. There are those that attract no annual fees and others that impose annual fees but offer higher rewards. In addition, if your credit card carries a balance, it is essential that you do your mathematics properly to determine whether you will save when you transfer it. Balance transfer cards come in different forms. There are those that offer 0% intro rate in their first months mostly about 18 months but the interest rates hike to higher levels than those balance transfer cards, which attract some interest rates during the first months.

If you are able to repay your balance within a short time, you may need balance transfer cards that attracts some intro rates but does not hike the rates to very high levels after the introductory period.  However, if you cannot repay the balance in a shorter period, you may go for the 0% intro rate cards.

Today, mass market airline frequent flyer reward cards are offering good deals such as free check in baggage and travel insurance and these are deals which previous used to come with only the high-free premium cards. Although 0% balance transfer cards could seem enticing for people with big balances they have to pay off, on the other hand, low-rate cards might do better in the deals in the long run.

Maximizing rewards on credit cards can be a complex thing for card owners. Although cash back reward may be straight forward, others may be difficult. For example, if you are spending in categories like gas, you may earn the set maximum reward up to a particular amount but after that, the percentage rewards go down. This means that you will only enjoy the maximum rewards in a certain period and after spending certain minimum amount, which you may not be able to achieve sporadically.

Planning the spending patterns on your credit card benefits in order to optimize on rewards can be difficult and could plunge you into impulse purchase, which does more damage on your finances. You should not be ruined or tempted to spend more that you have planned simply to get the rewards. This can cost you a penny. It is essential that you keep note of confusing deals on cards.

Spending tiers are some of the confusing aspects you will find in rewards on credit cards. Some rewards cards will require that you spend up to certain amount so that you get the advertised deal. Consumers need to look for phrases such as “up to” when choosing the card offers. This could mean that you can only get the highest rewards only if you spend the set amount, which could be thousands of dollars in a year.

Similarly, if you find the phrase “up to” on a card deal, you also need to check on the other part of the rewards on credit cards that is not shown. If you do not spend the amount required to get the maximum perk advertised on the deal, what are the other options? In addition, you also need to check on hidden caps where cards such as gas rewards credit cards reduce the rewards percentage when you have spent the initial deal amount. Other important aspects you may need to check in rewards on credit cards are missed payment penalties, changes in terms and expiry dates of the rewards.