Published on 11/3/2009

Are you getting a good deal? Read our free rewards credit card advice.

Rewards Credit Card Advice

Rewards credit cards are designed to "reward" consumers to give something back to the cardholder like points, cash back, airline sky miles, or discounts for shopping with specific merchants. Reward credit cards change often as a way for credit card companies to compete with one another and as a way to gain new customers. They also like to keep their existing customers.

It is important to research the rewards credit card you desire before you actually select one. Make sure the reward they offer is one that you will enjoy. Some companies require the consumer to spend a certain amount before a reward may be earned. Rewards can expire, make sure you review the information on deadlines. Consider the tips below:

Pay off the balance in full each month. You may not earn a reward if you have a balance from month to month. If you are keeping a balance, you must pay interest and may not earn anything from the rewards.
How much you earn in rewards may require you to spend more money. A rewards credit card may state, "Earn Up To 1%" but that could mean you only qualify for less than 1% in rewards unless you spend a lot of money.
Decide how much you are willing to spend to get the rewards. For example, if you must spend $5,000 to get the reward of $50, is it really worth it? Yet other consumers can earn great rewards because they spends thousands of dollars each month. You must decide if the reward is worth the spending.
If you don't use a credit card often enough to earn good rewards, consider a different credit card. Usually a cash back credit card can be a good choice for any consumer. Earn cash rewards that can even be used toward your credit card balance. A rewards card to earn frequent flyer miles may not be a good choice for a consumer who does not use the credit card enough to earn those flyer miles.
Review the details on Gas rewards cards to make sure you use your card at places that qualify. For example, you may have to use your gas card at a certain gas station instead of a supermarket or a family owned station. There are guidelines for getting gas rewards.
Review the fees to have the rewards credit card. If you must pay a high fee annual fee each year for the credit card, you may have to spend thousands before you can earn a reward. You must determine what you must spend and if the card will benefit your lifestyle.
There are limits to rewards. Make sure you know the qualifications needed to earn the rewards and if there is a limited time to get the rewards. Sometimes the reward is stopped when you reach a certain limit. For example, if you get 5% cash back on purchases but it stops paying when you reach $400 in purchases. Some rewards expire if they are not used within a specific period of time.