Rewards Credit Cards
A rewards credit card is good for earning points toward rewards like cash back, travel rewards, airline rewards, merchandise, gas or retail gift certificates. While some credit card companies offer rewards credit cards with most or all of the above rewards some just offer one reward (usually airline miles). The best choice in a rewards credit card is one that offers a low or 0% introductory APR, a low (or reasonable) APR after the introductory period, no yearly membership fee and the ability to receive rewards relatively quickly. Some rewards credit cards also offer promotions where the card bearer can shop with particular merchants and receive "bonus points." Bonus points allow the rewards credit card user to earn rewards even faster.
Benefits of a Rewards Credit Card
- The bearer of a rewards credit card is entitled to many perks including cash back, travel (restaurants, hotel, gift shop vouchers, etc.), airline miles, general merchandise, gas, and retail gift certificates.
- Card can be used on everyday purchases or monthly bills to accumulate points. This allows points to be accumulated quickly
- If the credit card balance is paid in full the bearer, essentially, receives free goods and services
- Shopping with certain merchants entitles the card bearer to "bonus points" to accumulate points faster
Drawbacks of a Rewards Credit Card
- If the credit card balance isn't paid in full every month finance charges could outweigh the benefits of the rewards
- Some rewards credit cards charge a yearly membership fee
- Good or excellent credit is often required for rewards programs