Many financial institutions offer points credit cards. To find the right one for your needs, the first step is to consider the various offers that are available. Then you will be able to find credit cards that will let you collect points for rewards on things that you want. Rewards and points credit cards are only as good as you make them. Here’s what you need to know to make them work in your favor.
Types Of Rewards Points Credit Cards Available
You can get reward type credit cards that are structured in several different ways. One of them is to choose a card that gives you one point for every dollar you spend. Some card issuers will credit account holders with multiple points for each dollar spent on purchases for specific items, such as groceries, gasoline, or car rentals.
Other credit card companies reward their customers by giving them a large number of points when they make their initial purchase. Some people with a credit card offering rewards points can collect as many as they like, with no cap on the total amount they can accumulate over time.
People who enjoy traveling can collect air miles when they use their credit card. The points can be used when you book a flight or a cruise, but you will want to find out whether you are limited to certain airlines only before you apply for the card. Travel reward points can also be used towards the cost of hotels or car rentals. Other card reward programs are subject to blackouts and other restrictions, and you need to find out whether this is the case before you apply for a card. Often these travel type reward cards require a processing fee when you make your reservation, but that’s not always a fact they advertise up front, so be sure to ask.
Advantages Of Choosing Points Credit Cards
Choosing a credit card offering reward points has advantages for some customers. The points can be redeemed at any time once they have been credited to the account. When you are shopping around for a credit card, you can find one offering the kinds of rewards that suit your interests. Some credit card providers have entered into arrangements with specific retailers to offer discounts and bonuses to their customers. When you sign up for a card, you get these benefits as well.
Disadvantages Of Choosing Rewards Points Credit Cards
Rewards points credit cards aren’t the best choice for all credit card customers. The points can only be used to redeem the products or services as set out by the issuer, unless you specifically have a cash back option. The credit card company’s program determines where you can redeem your points, and how many points you need to accumulate before you will be able to redeem them. Each credit card company decides whether the reward points expire after a certain amount of time if they are not redeemed.
Things To Consider Before Choosing A Points Credit Card
When you are looking at different credit cards offering rewards points, you will want to be sure you understand all the terms and conditions that apply. For example, some rewards points programs require you to redeem your points by a certain time or you will lose them. You will also want to find out what will happen to any points you have accumulated if you decide to close your account or the credit card company decides to do it for you.
Many credit card companies will offer a low introductory interest rate on credit cards for new customers. This tactic is an effective marketing strategy to bring in new customers, but you need to find out how long you will qualify for the lower rate, and what the permanent rate will be. The difference between the introductory rate, which may be as low as zero percent in some cases, and what you will be paying six or twelve months after the account has been opened, can be significant.
To get answers to specific questions about the rewards program attached to your credit card, contact the customer service department of the institution you are considering dealing with. Many companies have someone available to answer phone calls 24 hours a day, seven days a week.
Comparing Points Credit Cards
Before you decide which of the points credit cards will work best for you, consider what kinds of rewards you are most likely to use. That bit of information will help to narrow your choices. Then you need to look at the terms associated with the credit card. Consider the interest rate you will be charged, both as an introductory rate and over the long term. This may seem like a lot of information to consider but help is available. Check out the free credit card tool at the top of this page. It can help you make the right choice. Why don’t you click on it right now to get started?
