Best Credit Card Rewards
Which Credit Card Offers The Best Rewards
The best credit card for rewards depends on the individual's lifestyle, usage patterns, and preferences. Factors such as spending habits, preferred merchants, and frequency of card usage play a significant role in determining the most suitable credit card with optimal rewards.
How to choose the best credit card rewards
A person whose job means that they have to travel widely and also entertain prospective customers will seek different benefits from a rewards credit card than would a student. The traveler will benefit by having his expenses reimbursed so any points or upgrade options will not cost the card holder directly. Conversely, a student may wish to find a card with no annual fee and a low interest APR for the times when the monthly budget may not stretch to clearing the card balance completely. Most credit cards will have an APR of between 14 percent and 25 percent, so an extended period with an outstanding balance can become very expensive. Given that the full monthly balance will be cleared, then the level of rewards available fall into a number of categories outlined as follows. Many cards offer a number of points for each dollar spent on the card, others offer up to 2 percent as a 'bonus' cash back on some purchases. When signing up for a new card it may be possible to procure a 'sign-up' bonus which could be worth several hundred dollars. However, conditions may apply which require a particular level of usage of the card during a set time period in order to qualify for the full bonus payment. Many cards do not charge an annual fee or will waive the fee for the first year for a new customer. The APR charged by the card providers may be very important, or not important at all, if the card balance is not cleared, or cleared in-full, each month. The APR rates quoted vary widely between 14 percent and 25 percent. Other benefits that some card providers offer to their customers include travel insurance, airport lounge access, enhanced luggage allowances and hotel upgrades. These travel benefits are not 'free' as the cards offering these perks usually have a substantial (100 - 550 dollars) annual fee attached to them.Branded rewards cards
A credit card issued by one of the major card companies such as Visa, Mastercard or American Express may also carry the branding of an airline or hotel chain. In this case the card holder will receive enhanced rewards when purchasing services with the named provider. As an example, American Airlines card holders will receive 2 air miles for each dollar spent on restaurants, gasoline and with American Airlines themselves. Other purchases will attract 1 air mile per dollar spent. Hotel group IHG offer their Mastercard holders the chance to accrue 15 points per dollar spent at an IHG property, with 2 points per dollar for purchases of gasoline and at restaurants and 1 point per dollar spent elsewhere.Branded card holders, who travel and use a particular hotel chain on a regular basis, could build-up a large amount of points during a year which they could then use for personal travel or hotel stays with their family. The best credit card rewards will depend greatly on the life-style and circumstances of the card holder themselves and the level and regularity of use of the card.
