The primary benefit of a reward credit card is the ability to earn points for every dollar you spend. By doing this, you will eventually find yourself in position to redeem these points for everything from travel to cash back to gift cards.
With so many reward credit cards to choose from, making a final decision is never easy. By answering the following questions, you can avoid some of the challenges associated with making a choice:
- How do you earn points? It’s pretty clear that you earn points for the money you spend. However, you need to know exactly how this works with each credit card.
For example, some offers allow you to earn double points for purchases within certain categories, such as gas and groceries.
Knowing how you earn points will help you choose the credit card that best suits your spending style.
- Do the points expire? As you add more and more points to your account, you will begin to dream about how you can use them. The last thing you want is to learn that some of your points have expired.
Before you ever sign up for a card, make sure you know how long you have to use the points. If you aren’t comfortable with the expiration policy, it’s probably best to move on to another offer.
- What can the points be redeemed for? Every reward credit card claims that their program is the best. We don’t have blackout dates for travel. Start redeeming at 2,500 points. These are the types of selling points you will come across.
It’s important to know what you can use your points for, as you don’t want to find yourself stuck and wondering what to do next. For example, if you want to redeem your points for travel, find a rewards card that focuses on this category.
These are the types of reward credit card question you need to answer. They aren’t always simple to address, but doing so will put you in position to make an informed and confident decision.
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