Taking Full Advantage of Rewards Credit Cards

by : Morgan Hamilton

The offers that are put forth include special interest rates, lower or no annual fees, cashback rewards, and of course, the ever popular travel rewards.

To delve a bit further into the types of rewards credit cards available we have, airline miles, hotel credit cards, charity credit cards, sports and entertainment credit cards, gas credit cards... gasp, I'm going to stop there, there's just too many to list. I think you get the point though. Each card is targetted to a specific market where the use of a credit card is practical. Rewards points are earned for various purchases and can be redeemed, or traded for goods and services offered in partnership with the credit card issuer.

Airline miles credit cards sit at the top of the food chain. The whole idea here for the card holder is to earn free travel by using their rewards credit cards. Airline miles are doled out for every mile flown from an airline ticket purchased with that credit card. With the rising cost of gas, gas rewards creidt cards are now gaining popularity at a rapid rate. The standard deal is usually a percentage point rebated for all your gas purchases. Cash rebate cards are another sought after reward card.  These cards actually let a person earn a cash reward for every purchase they make.  This can add up to some pretty substantial savings if you use your credit card often. A percentage of each dollar spent is paid back to the person. It is also reffered to as a cashback credit card. 

There are some dangers associated with using rewards credit cards. Some people will actually over use their rewards credit card just to accrue the bonuses offered. It can lead to people getting in way over their heads financially. Always take a good long look to see if what you are are charging is really necessary. Don't ever buy anything just to earn rewards points. If that's the case, then just buy the product that is being offered as a reward and skip the middle man. 

Many times a person will find out that even when figuring in the reward, they are spending more overall than if they shopped elsewhere.  This is one of those hidden truths about credit cards that people just don't see. Also be aware that many rewards credit cards have high annual fees or interest tacked on to them. When you figure all this information into the equationFeature Articles, it is sometimes better to forego the rewards credit card for a standard credit card. You will actually get a better deal. Reward yourself by staying out of debt.