Carrying a rewards card can help you to accumulate savings when you are doing your shopping. Swiping your card for purchases allows you to earn some rewards for every dollar you spent. The following are 3 simple tips on how to find the right rewards credit card this year.
1. Decide Between a Cash Back or Travel Rewards Card
You must decide whether you want a cash back or travel rewards card. If you are someone who use your credit card on everyday expenses, cash back card will be more suitable for you. Some cash back cards allow you to earn a flat rate cash back on all purchases. There are also cash back cards that offer rewards for shopping in rotating bonus categories. The bonus rotating categories changes every quarter and you can find the full list of categories on their site.
If you travel regularly, you should get a travel rewards card. Travel rewards card enables you to earn miles that can be exchanged for free flight tickets, for ree hotel nights and travel statement credits. Cards that are issued by a certain airline or brand of hotel will offer higher rewards when you shop with them and lesser points for everything else. Therefore, you should choose the Every day card wisely. For example, if you frequently travel with Delta airline, then it will be best to apply a Delta rewards card.
2. Check the Annual Fee
Secondly, you must check the annual fee of the rewards card. There are lots of cash back cards that don’t have annual fee, for example, Citi Double Cash, Chase Freedom, and Blu Cash Everyday by American Express. Travel rewards card usually have expensive annual fees but some of them have waived the fee for the first year. If you are considering to sign up a card with annual fee, you must calculate and see whether the value of the rewards exceed the annual fee.
3. Check the APR Interest Fee
Thirdly, you must check how much APR interest fee the rewards credit card will be charging. You can find out the APR interest by getting preapproved. You should get preapproved by several credit card companies so that you can compare the interest rate. To get preapproved, you must fill in the online application form and they will send you a reply in 1 – 2 days on the estimated APR interest. If you have good/excellent credit score, you should have no problem in getting the a low APR interest fee.
The key to finding a low interest card is to use the credit card comparison search engine as it offers a quick glance of the interest rate and other fees for various credit cards. In a comparison search engine, you can filter the search result based on your credit rating and the type of rewards card you are looking for.