Rewards for Everyone
In case you’ve been locked in a closet for the past few years, and you’ve missed the stack of ultra-competitive credit card and balance transfer offers piling into your mailbox every day, let me fill you in: credit card companies are fighting tooth-and-nail for your business.
When it comes to getting consumers’ attention, low interest rates just don’t cut it these days. That’s why credit card issuers now offer credit cards with a wide variety perks to attract – and hang onto – their most valuable customers.
If you pay your credit card balance in full every month, your focus should not be on interest rates, but on what kind of rewards your credit cards can earn you. If you’re spending the money anyways, you might as well put it on your credit card to earn rewards instead of writing a check. You can pay for just about anything with plastic – you can even pay for your utilities by credit card in most localities. Who knew that paying your water bill with a credit card could get you a free trip to Disney World?
What’s in it for me?
Here is just a sampling of the different types of rewards you can earn based on your credit card spending:
- Cash back
- Contributions to college savings plan
- Free airline miles
- Free hotel points
- Free gasoline
- Rebates toward future auto purchases or leases
- Rebates toward sports games & equipment – golf, skiing, etc
- Rebates toward your mortgage payments
- Rebates toward movies & entertainment
- Rebates toward Sony electronics
The possibilities are just about endless! Here are some guidlines for selecting a rewards credit card:
Choose rewards that best fit your needs. Just about everyone could use a cash-back card. But if you love watching movies, you might enjoy the benefits of your entertainment rewards card. If you have young children, consider a college rewards card, where a small portion of your expenses goes toward your children’s college savings fund.
Read the fine print. Some rewards cards have high minimum dispersal requirements, or don’t kick in until you spend a certain amount of money. Make sure your spending will qualify you for the rewards. Other rewards cards require that you carry a balance to maximize your rewards. If you pay your balance in full every month, steer clear of rewards cards that might tempt you to carry a balance.
Final words of caution
Don’t let your credit card’s rewards/perks encourage you to spend more than you would otherwise. Remember that you save more money by not spending than you do by earning, say, 5% cash back!
Why not let your credit cards work for you?
