Rewards Credit Cards

Rewards credit cards allow clients to receive incentives for their credit card purchases. Points gather for each dollar charged on the card, and cardholders can cash in points for different rewards. Usually above average credit is required for approval. There are seven main types of these cards:

Cash back credit cards allow you to earn cash rewards for making purchases. The more the card is utilized, the more the cash rewards. Some of these cards have a yearly fee, so this card is better for those who are loyal to paying their balances monthly. If used properly, the cardholder can receive a major amount of cash with time.

General reward credit cards are like cash back cards because cardholders can accumulate points which are based on how much the card is used over time. Some of these cards come with an annual fee but most have none. Reward cards are best for persons who are also loyal to paying off balances monthly. By lowering their finance charges, cardholders will gain greater benefits associated with this credit card.

Hotel or travel points credit cards allow you to earn points for all purchases made, in addition to bonus points for money spent on stays at respective hotel chains. You can use your points for free nights and upgrades at hotels affiliated with your card. Many of these cards come with an annual fee so if you are not a frequent traveler, the annual fee may outweigh the benefits.

Retail rewards credit cards are affiliated with a major retailer. Points are collected by making daily purchases, though cardholders are rewarded with double or triple points for making purchases from the retailer. Reward points must be used for products or services from that particular retailer.

Gas cards come in two types, general and brand-specific. General cards treat all gas companies the same, while brand-specific cards support one gas company. If you are loyal to a specific gas company, a brand-specific card would benefit you, but if you stop at any gas station, you would more benefit from a general gas rebate card.

Automobile manufacturer rewards cards allow cardholders to gain points that can be used toward purchasing a new or used vehicle, auto expenses or products. This card is most beneficial to individuals purchasing a vehicle in the future.

Home improvement rewards credit cards allow clients to reap reward points for all purchases, while gaining additional points for home expenses. Rebates earned are applied to your mortgage principal.