Credit Cards

Evaluating a credit card reward program

Credit card reward programs can help you earn a lot of cool prices for the money you spend. Such programs have grown in popularity over the years. Consumers like the idea of accumulating points every time they use their card and feel they are getting something back.

Credit card reward programs range from free air miles on you ticket, to items such as CDs and DVDs. Credit card reward programs have different significance to different people. Some make their credit card selections solely based on the reward program offered, while for others it is of slight importance behind such things as low interest rates, low fees, etc. Credit cards with reward programs usually have a higher APR and fees than regular cards, in order to pay for the rewards.

A credit card reward program usually offers 1% back on charges made to the card, either in terms of cash back, air miles or other rewards. It is important to pay attention to certain purchases that may offer no reward points and yet others that may offer 5 or even 10 times higher reward points that regular purchases.

Credit card reward programs can depend on the company issuing the card and will differ from card to card. For example you can get a sports card that allows you to earn tickets to see your favorite team play. Or a gasoline card can help you earn free gas. An airline car will get you a free ticket in time. A student credit card might offer cash back or reward items such as books or CDs.

It is important to note where can you redeem or earn your points in your credit card reward program. Certain airline or department store cards will only allow redeeming at that particular airline or store. Others will award points for practically every purchase. Also it is important to note if the reward has an expiration date and other small print items.

You must be able to commit to a credit card reward program in order to benefit best from it. For example for a travel reward card, it may take time to build up enough miles to buy yourself a free ticket. If you change cards midway you may have to start anew to build up enough points for a decent reward.

Airline credit reward

You will have to decide whether the credit card reward program is worth it or not. This involves calculating the reward value and the time it took to earn in. Was the price of the reward greater than or less than the higher interest you were charger for the reward program? If the price is lesser, than you may be better off getting a lower interest card and purchasing the item on your own.