Credit Card ’s Talk

When comparing the best reward credit cards, it makes sense to investigate everything, including the Annual Percentage Rate (APR) as well as any reward features that the card may offer. Potential cardholders should take into account the manner in which they handle their credit purchases. For instance, if the cardholder intends to make a large purchase using a credit card but plans to pay for the charge over the course of several months, then a low interest credit card will be a better financial choice over a reward credit card. If a cardholder plans on repaying the charge immediately (even if the card features a higher interest rate), reward credit cards might be a better choice simply because the interest rate will have no financial impact and will almost always provide a greater range of rewards than a lower interest card.

Balance Transfers

If it is your intent to take advantage of a reward credit card that features a 0% balance transfer offer, it might make sense to choose a card that offers 0% on purchases as well, if at all possible. The reason this may be an appropriate step is that when you take advantage of the 0% balance transfer card offer, many times the APR on purchases will be significantly higher comparable to other card offers. So if you make a purchase using that credit card during the life of the balance transfer your new purchases will be subject to significant finance charges until the purchases are paid off. This can result in significant interest charges before you can begin paying on the newly purchased item. If you are unable to locate a reward credit card with a competitively low ongoing APR, it would make sense to obtain a secondary card for new purchases with a low interest rate, which would make the card balances more cost effective and easier to manage over time. The ideal scenario for cardholders would be to use a card with a 0% balance transfer offer that extends to new purchases during the introductory period.

Interest Rates

While researching card offers, you may notice that reward credit cards typically have a higher interest rate and in many cases require an annual fee. These fees and finance charges are used by the card issuers to help finance the rewards program that cardholders participate in. But if you are disciplined enough to pay off your credit card each month, the value of your rewards should dramatically exceed the cost of interest charges and fees that you might otherwise pay the card issuer. While credit card companies are well aware of that premise, they also know that the majority of our spend-now-pay-later oriented society will most likely not utilize the card in this manner.

By shopping for the best reward credit cards online, you have a fantastic opportunity to comprehensively evaluate offers, their benefits and their associated fees and potential finance charges. A thorough approach the card offer research will help determine which card provides the greatest benefit as well as long-term savings for your particular situation.

In short, if you are paying for purchases over a long period consider a lower interest card. If you pay back quickly, consider more of a rewards component in your search for the very best reward credit cards.

For more information on different types of the very best reward credit cards, Bert Roberts recommends that you visit CreditCardAssist.com

Finding the best reward credit cards does not have to be a difficult task. In fact, with so much information available on the Internet, it is quite easy to compare different cards to find the best ones available. Really, it comes down to your individual needs when deciding on the reward credit card. But, there are a few things to consider when trying to determine which reward credit card is best.

Earning Points

Most reward credit cards work by awarding you points for all purchases you make with the credit card. Some will offer a standard rate of return on all purchases and offer extra points for specific purchases. For example, an airline rewards credit card may give you extra points when you purchase items on your credit card with the airline it is associated with. Or, a gas rewards credit card may provide you with extra points whenever you make a purchase at their specific gas station. Some rewards credit cards take a broader approach and award bonus points for purchases made at any gas station, regardless of the brand. Or, they reward points for purchases made at grocery stores or drug stores.

When choosing a reward credit card, research how you can earn points in order to receive rewards. If you don’t drive often because you live in the city and take the bus, a gas rewards credit card won’t do you a whole lot of good. Choose a reward credit card that fits naturally into your current lifestyle so you can take advantage of the purchases you make anyway.

Points Value

Of course, when using a reward credit card, you want to earn as many points as possible for the card. But, don’t be fooled by a credit card offering 10 points for every dollar spent as opposed to one offering just 2 points for every dollar spent. Learn more about what you can buy with the points you earn and how much it costs to make those purchases.

Earning large amounts of points doesn’t do you much good if the rewards cost a large number of points to purchase. For example, you may earn 10 points for every dollar with one credit card, but it takes 100,000 points to earn a $25 gift certificate. This means you had to spend $10,000 to get that gift certificate. With another card, you may only earn 2 points for every dollar spent. But, you only need 10,000 points to receive a $25 gift certificate. With this card, you need to spend just $5,000 to get that gift certificate - half of what you needed to spend with the other credit card.

Expiration Dates

Some reward credit cards have expiration dates on the points you accumulate. Be sure to consider these expiration dates when choosing your card. If, for example, the points expire after just one year, you might not be able to save up enough points to do anything useful with them. So, you should assess your spending habits and get an idea of how many points you should be able to accumulate during that time period. If it appears you will be able to save enough points and take full advantage of the rewards program, then the expiration date may not affect you too negatively. Nonetheless, the best reward credit cards will give you the freedom and flexibility to spend your points whenever you are ready to spend them - even if it takes you a couple years to save up for what you really want.

Points Caps

Some reward credit cards also put a cap on how many points and rewards you can earn per year. Find out what this cap is and determine if it is too low for you. If, for example, you typically spend about $20,000 per year on a credit card, but the reward credit card you are considering only provides points for the first $15,000 spend, you are spending $5,000 on that card that is going unrewarded. If this is the case, you have two options. One option is to pass on the card and find one that better fits into your spending habits. Or, you can apply for the card but stop using it after you have reached the cap. Then, do the remainder of your purchases on a different credit card.

For more information on finding the best reward credit cards, Bert Roberts recommends that you visit CreditCardAssist.com.

When looking into the different types of reward credit cards, it is important for you to understand that there are a wide variety of reward credit cards to choose from. The type of reward credit card that is right for you is largely dependent on your own personal lifestyle and needs.

Airline Miles Reward Credit Cards

Airline miles reward credit cards are usually offered in partnership with a credit card company and an airline company. There are, however, some airline miles reward credit cards that have partnerships with multiple airline companies. Regardless of how the partnerships work with the credit card, the basic idea is the same.

Airline miles reward credit cards allow you to earn points or miles for every dollar spent with your card. In addition, many of these cards provide you with bonus miles for spending money at certain stores or on specific types of purchases. Most commonly, bonus points or miles are earned when making purchases through the applicable airline.

After earning a certain number of points or miles, you can then trade them in for free or reduced air travel with the applicable airline. With some airline miles reward credit cards, you might get to choose from a number of airlines. With other cards, you might only get to receive free travel from a specific airline. Therefore, it is important to choose your airline miles reward credit card in accordance with your preferred airline.

Some airline rewards credit cards also allow you to combine your credit card miles with frequent flyer miles. Often, it takes several credit card points to equal one mile in the frequent flyer program. So, you want to check into the conversion factor before you take advantage of this aspect of the program.

Airline miles reward credit cards also often offer other special rewards. For example, some provide free upgrades or companion tickets. In addition, they generally provide more travel related benefits then other credit cards, such as a higher amount of travel insurance coverage.

Cash Back Reward Credit Cards

Cash back reward credit cards are similar to airline reward credit cards, except the points you accumulate work toward providing you with monetary rewards. Sometimes, a point system isn’t used with cash back reward credit cards. Instead, you receive a certain percentage of your spending back. Just like airline miles reward credit cards, cash back reward credit cards may provide extra points or higher percentages to for certain purchases. For example, some provide more rewards for purchases made at grocery stores or drug stores.

The way you receive the cash back varies from card to card as well. Some cash back reward credit cards provide you with a check after you have earned back a certain amount of money. Others add your cash back directly to your credit card and help you pay off your balance. Still other cards may put the money into special savings accounts or interest-yielding accounts, such as college-savings plans or special accounts for purchasing a car.

Miscellaneous Reward Credit Cards

In addition to airline mile and cash back reward credit cards, there are also a number of other plans associated with these cards. Again, they generally involve accumulating points in order to earn rewards. With some reward credit cards, these points can be traded in for things such as gift certificates to stores, restaurants, or service providers. Some even have catalogues of items you can purchase with your rewards points. Yet others allow you to choose form cash, airline miles, or other types of rewards. These are generally the best reward credit cards because of their variety and flexibility. But, ultimately, it is up to you which type of reward credit cards is best for you.

For more information on how to decide which reward credit card is right for you, Bert Roberts recommends that you visit CreditCardAssist.com

Having a credit card is a wonderful convenience for those times when you don’t have immediate access to your cash. It can allow you to purchase something on time for which you can pay later, thereby giving you the ability to afford something NOW that you’d have had to save for later. But buying on credit will also cost you money - in that way it’s no different than taking out a loan to buy something that you want. There are, however, ways to save money when you buy with credit cards.

0% Balance Transfers

One of the most common ways to save money with credit cards is by transferring your balance from a high interest credit card to one with a low or no-interest card. It’s easy to illustrate your savings there. If you are carrying a balance of $1000 on a credit card that has a 19% APR and transfer it to one that offers 0% introductory APR for 9 months and a 15.9% regular rate, here’s how your savings stack up:

Interest on old card for one year:

1000
x .19
$ 190 annual
$ 15.83 per month for 12 months

Interest on new card for one year:

1000
x 0
$ 0 per month for 9 months

$1000
x .159
$ 159 annual
$ 13.25 per month for three months

for a total of $39.75 for the year.

That’s a total savings of $159.25 for one year.

You can, however, save the full $199 by paying off the entire $1000 during the 9 month introductory period.

Save money on credit cards with lower interest rates

It’s fairly obvious that you’ll pay less in interest charges if you choose a card with a lower APR, but before you jump for the card with the lowest interest rate, take the time to figure out your own buying habits. If, for instance, you tend to carry no balance or a very low balance from month to month, a low interest rate matters far less than say - a good rewards or cash back program, or no annual fee. If, on the other hand, you carry a balance from month to month, the APR is the biggest determining factor in how much your credit card will cost you.

Just as an example, if you generally carry less than $100 on your credit cards from month to month, even an interest rate of 19% only works out to $19 a year, or $1.58 per month. In that case, it makes little sense to choose a credit card that offers a 10% APR with a $29 annual fee.

On the other hand, if you carry a $500 balance from month to month, you’ll pay $95 in interest for the year at 19% - but even adding in a $29 annual fee, you’ll only pay $79 for the year at 10%.

Don’t just assume that the lowest interest rate is the least expensive card. Do the math - and save money with your credit card.

Save Money with Your Credit Card Rewards Program

Cash back and reward points programs are another way to save money with your credit card. If you use your card often but still manage to keep your balance low, you can save 1-5% on purchases that you’d make anyway. Many cards these days offer 5% cash rebates on any purchases made at gas stations, convenience stores and supermarkets. In many cases, those rebates are applied directly to your bill. If you purchase your groceries with your credit card AND PAY THE CARD OFF immediately, you’ll end up saving 5% on your grocery bill all year long.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/