You must know that rewards credit cards help you in earning cash back, miles, or points that could boost the overall value of making payments with your credit card over debit cards or cash. As https://www.cnbc.com, you do not necessarily need to be aggressive about optimizing points for reaping the benefits associated with any type of rewards credit card. With the perfect card and healthy financial habits (making timely and full balance payments every month), you have the potential of earning $2000 or even more in terms of rewards in around five years or so. That amounts to an additional amount of $400 to about $500 every year and this amount could be used for purchasing more groceries, making reservations for airline travel, or even splurging on a new gadget, etc.
You must be knowing that rewards programs operate as per certain rules and regulations associated with issues such as when you have the permission to redeem rewards and that could make things complex and pretty perplexing for navigating your card’s program. Suppose you are having four credit cards which is the most common thing to do in the United States of America, the matter could mean double trouble for you.
You are required to have a sound understanding of multiple programs if you are having cards with different types of reward programs such as points, cash-back, and miles cards. Some of the cards even come up with extra perks like travel insurance, discounts at select stores, annual statement credits, etc. and all these perks make the use of these rewards credit cards truly sensible and meaningful.
You must understand that your card may come up with bonus rewards on specific categories like increased earning rates may be on groceries or dining. Alternatively, your rewards credit cards may be providing you with literally the same consistent amount of rewards practically on every single purchase. It pays to remember that you would be earning rewards only on new purchases and not on any cash advances or balance transfers.
Different Kinds of Popular Credit Card Rewards Programs
Credit cards usually offer any one of the following three reward structures: Miles, Points, or Cash. The precise kind of rewards earned by you would depend on the specific card you are having.
A majority of the co-branded airline cards would be offering miles as an integral part of the unique membership rewards programs of the brand. For instance, let us talk about the co-branded Delta cards such as the Delta SkyMiles® and even the Blue American Express Card that provides rewards basically as SkyMiles. A southwest credit card helps you earn every time you travel. The card additionally, allows you to offset its annual charges if a point is valued at 1.5 cents.
Most Cash-back cards help you earn a specific percentage of cash as per your spending like the exclusive Citi® Double Cash Card that offers in total 2 percent cash back just 1% on all your purchases and also, an additional 1percent once your credit card bill is paid.
Some credit cards offer neither miles nor cash backs but they come up with points. For instance, the Chase Sapphire Preferred® which comes up with Ultimate Rewards points, while the American Express® Gold Card provides Membership Rewards® points.
It could prove to be pretty dicey to manage multiple rewards programs. However, things could be relatively easier if your cards come from one and the same issuer. For more info Start Blogging.