There is no magic to selecting the right reward points card. In fact, it basically comes down to just a few basic steps:
Identify your most important perk. For example, if you’re not interested in traveling, then consider a cash dividends or rebate card. On the other hand, if you’re looking for ways to offset some future travel to an exotic locale, you may be better served with a rewards card that offers hotel points or airline miles.
Figure out where you spend the most money. This will help you rack up rewards quicker. For example, if you drive a lot, look for cards that award extra points, miles, cash back, or dividends for fuel purchases.
Look for cards with the biggest sign-up bonuses. Most rewards cards offer bonuses to entice you to sign up. Just be careful! You may have to reach a minimum purchase threshold within a specified period to qualify.
Keep it simple! Look for cash back cards with simple terms and other restrictions.
Compare interest rates and annual fees. Rewards points cards typically have higher APRs than most other cards. As a result, you’ll need to keep the interest rate as low as possible if you plan on carrying a monthly balance otherwise the resulting cost may exceed the value of your rewards.
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Good post.
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Look at the other benefits of each card. Does it offer protection for lost luggage, does it offer good insurance for rental cars? Call each company and talk to those nice folks who are desperate to sign you up for their card, there are a lot of different benefits which vary by card and some of them are quite useful or valuable. If you’re chasing rewards (I’m a mileage junkie!) you NEVER, NEVER, NEVER carry a balance. You pay off your card twice a month online and you NEVER pay interest. If you carry a balance a rewards card is not for you because the rewards are worth less than the interest you will pay.
Great advice to PAY OFF YOUR CARD TWICE A MONTH ONLINE. No one else, that I know of, has yet suggested it.
I always pay off the total balance during the grace period, but last month, in order to rack up the additional miles on my airline rewards card even faster, I paid the additional charges that had accumulated since “statement closing date” within the same time period. To my amazement, my FISO credit score leaped up almost 100 points! I plan on doing this a lot more often.