Is a reward credit card worth the deal? Can you enjoy real benefits if you are a reward credit cardholder? Some people may prefer non-reward credit cards over credit cards with rewards primarily because a non-reward card typically carries a lower rate.
However, a reward credit card can also be a practical choice for you, depending on your personal spending and lifestyle. In this article, let us take a look at the benefits you can get from reward credit cards.
Get something in return for your spending. A reward credit card gives its holder the opportunity to get rewarded for his/her spending so if you use a credit card regularly to pay bills or to purchase necessities, then you may consider if a reward credit card is right for you.
For example, some of the best rewards credit cards are sponsored by different merchants and businesses. When you shop from a specific department store, stay at a certain hotel, or dine from a particular establishment, you can earn bonus points for every dollar you spent with your credit card. This can be a great way to earn extra money out of your spending.
The important thing is to look for a reward credit card that matches your lifestyle. You need to understand the rules of the reward program to make sure that the rules work for you and that you don’t need to go out of your way just to earn points.
Enjoy exclusive discounts and privileges. Reward credit cardholders are entitled to certain privileges that ordinary cardholders do not enjoy. For example, you might be given an extra year of warranty from your purchases or additional protection against damages and liabilities.
You can also enjoy a discounted rate from affiliated shops and merchants, online and at store locations. Since this is an exclusive offer, you can only avail of the lower price if you will use your reward credit card to pay for the purchase.
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How to Benefit from Your Reward Credit Card
Below are tips on how you can make the most out of your reward credit card while avoiding the high interest rates, fees and the risks.
Pay your balance in full. It’s no secret that most reward cards carry higher APR charges so paying off your monthly balance is crucial to really benefit from a reward credit card.
Make sure regular purchases count. Some reward credit cards may advertise big reward points that are only applicable on selected transactions. You want to make sure that you get points each time you use your reward credit card for a purchase or to pay a bill.
Understand the reward system. How can you earn reward points? What are the rules on redeeming rewards? What options do you have when it comes to redemption? Is there a limit to the number of points you can earn per month? Will points expire? It’s very important to understand the rules of the reward program before you sign up for one.