Reward Credit Cards

Reward credit cards are common these days and can offer big benefits to users. Rewards can include a wide range of different things, such as cash-back, air-miles or even payments towards a mortgage!

While rewards are a big incentive to choose a particular card, it should be kept in mind that other features and details of a card can make a big difference too. The interest rate is obviously one important factor. Many offers these days include an initial interest-free period (sometimes a year). If this zero interest period applies to balance transfers it can be extremely useful.

A 0% rate on balance transfers can be used to save paying interest on existing loans by transferring the borrowing onto the new account. Even more exciting is the fact that such offers can be used to make "free money" by putting the available funds into a high-interest savings account for the initial period.

Don't believe any information which tries to tell you which rewards are "best". This is nonsense because different rewards are better for different people, depending of course on your spending patterns and financial situation.

To find the best rewards for you, first look at your personal finances. What do you spend most money on? What types of spending do you regularly do which align with a type of reward?

Air-miles can be a great reward for those who travel a lot by air. Hotel discounts and special deals can also be valuable to those who stay away from home regularly. Some rewards are specific to a particular company, such as those on the Disney card which include discounts and special offers on Disney products, free trails and tickets as well as priority bookings at certain events.

Cash-back is a popular reward. It can have different percentages for different classes of expenditure. For example some offers give a larger percentage on gas purchases, which can of course be really useful if you spend a lot on gas.

Reward credit cards are a great choice as they give you additional benefits, but be sure to check all the details and be sensible in your choice of offers.