Making the Most of Rewards Credit Cards and Points

From the national news to the water cooler at work, the dangers of overspending on credit is a hot topic. A topic that is much less publicized is choosing the correct credit card that fits your lifestyle and using it to its full potential. With the benefits offered by many different credit card companies, you can see yourself saving money at the end of the year that would have been lost had you been using cash. Choosing a Rewards Credit Card can make a difference in the way you spend you budget.

Before choosing which credit card, it is important to think about your needs. Do you travel often? If so, there are a number of credit cards that give you frequent flyer miles for each purchase. For instance, some Rewards Cards will give you 2 frequent flyer miles for every $1 spent plus 10,000 miles if $1,000 is spent in the first 3 months of having the card. There are also credit cards, such as the hotel Rewards that allow you to earn money towards a hotel stay.

    There is also an emerging market for credit cards that offer great rewards on commonly purchased items. There are rewards cards that offer cash back on gas purchases, 2% back on groceries and 1% back on everything else. for the generalist, there is the American Express Blue Cash Card. With this card, you will receive 5% cash back on all purchases, as long as you spend over $6,500 in the calendar year. 
    Many banks also have their own online store where you can make purchases using reward points from the cards they issue. Some of these online rewards stores offer great deals like the ability to buy prepaid cash cards with your reward points.

Reading the Fine Print
 It seems that there are a hundreds of different ways credit card companies choose to return your rewards to you and some are more favorable than others. You may be more interested in cards that send you a check for your rebate or automatically deposit it in your bank account. Also note that depending on the terms of the card, you may only see your rebate come in once annually. Also important to keep in mind is that generally the better the rewards, the more difficult the card is to be approved for. If you do not have good credit, applying and being denied for credit cards can further damage your FICO score. So be wise before you apply, generally you already know what cards that you may qualify for before you apply.

Conclusion
    A rewards credit car is an excellent way to save money. To maximize your savings, you should take the time to figure out which card fits you best. If you spend a lot of money on gas or hotels, a credit card that offers rewards in those areas may be your best option. If you would like more flexibility, a card that offers rewards points or a certain percentage cash back on all purchases may be more up your alley. Regardless of which card you choose to apply for, take the time to read the terms and understand what it is are best suited for before you apply.