Rewards cards are like magic wands, giving you cash back, points, or travel miles for every dollar you throw their way.
Choosing the best one? It’s like picking a buddy for your spending adventures. Look at your daily habits, imagine how you want to use those rewards, and voila – your perfect match awaits! It’s not just a card; it’s your ticket to rewards that match your vibe.
But to learn at length how to choose the right rewards credit card, let’s jump into the following article.
How to Find the Best Rewards Credit Card for You?
Choosing the best rewards credit card can be a bit tough, but it isn’t impossible. You just need a little guideline to achieve the best one in the market. And that’s why we are here.Â
Let’s see what steps you need to follow to find the best rewards credit card.
Step 1: Maintain a Good Credit Score
Having a credit score is really important if you want to get a rewards card. According to Experian, which’s one of the credit reporting agencies you usually need a credit score of at least 670 to be eligible. If your score is lower, then you might want to check out secured credit cards, some of which now come with rewards programs.
Before you apply for a rewards card it’s smart to take a look at your credit score. Keep in mind that if your credit history is limited or not so great you might not have access to those cards with all the benefits and higher spending limits. Also be careful, about applying for credit cards because it can actually hurt your credit score. So make sure you approach the application process with caution and some strategic planning.
Step 2: Don’t Carry Balance
It’s a good idea to steer clear of keeping a balance on your credit card, especially when dealing with rewards credit cards. These cards often tag along with higher Annual Percentage Rates (APRs), and if you let a balance linger, it might wipe out the perks you’ve earned.
Picture this: you’re racking up rewards, but if you let a balance hang around on a high-APR card, the interest charges can swoop in and overshadow the value of those hard-earned rewards. It’s like taking one step forward and two steps back.
To really make the most of those rewards credit cards, you’ve got to play the payment game smart. Clear that statement balance by the due date – not only does it save you from interest charges, but it ensures your rewards stay a positive addition to your financial game plan rather than getting chipped away by interest expenses.
So, here’s the deal: be financially savvy, ditch the lingering balances, and you’ll unlock all the cool perks and benefits that come with rewards credit cards. Just keep in mind, that it’s not just about snagging rewards; it’s about handling your credit like a pro to squeeze every bit of goodness out of those cards.
Step 3: Travel Often
If you’re someone who’s always got the travel bug, here’s a nifty trick: turn your everyday spending into a ticket for your next adventure, especially if you’ve got a travel credit card.
Imagine this – your routine expenses becoming the secret weapon to rack up points for that dream getaway. It’s like turning your grocery runs and coffee stops into mileage for your next journey. And if you’ve got a travel credit card in your wallet, it’s even better.
These cards are like your passport to a world of perks. Every swipe can translate into points that inch you closer to your next destination. It’s not just about buying stuff; it’s about funding your next travel escapade with the things you’d be doing anyway.
So, whether it’s grabbing your morning latte or picking up some groceries, think of it as a small step toward your next big adventure. Your travel credit card isn’t just a piece of plastic; it’s a magic wand that turns your everyday spending into the currency of exploration. Pack your bags, your next journey might just be a few swipes away.
Step 4: Be a Loyal Customer of an Airline or Hotel
If you are a devoted fan of a specific airline or hotel – you know, that one you’ve sworn your loyalty to – there’s a cool trick to turbocharge your travel rewards. Enter the world of co-branded credit cards, your VIP pass to amping up points for those cherished flights and cozy stays.
Think of it as having a secret handshake with your favorite travel brand. With a co-branded card, every swipe isn’t just a transaction; it’s a step toward scoring more points with the airline or hotel you’ve pledged allegiance to. It’s like turning your everyday spending into a direct line to faster boarding and extra comfy hotel beds.
And the perks? Oh, they’re not your run-of-the-mill rewards. We’re talking about exclusive access, priority check-ins, and maybe even a room upgrade or two. These cards aren’t just pieces of plastic; they’re your golden ticket to a travel experience tailored to your preferences.
So, whether you’re jetting off to exotic destinations or planning a weekend getaway, let your loyalty pay off. Your co-branded credit card isn’t just a card; it’s a backstage pass to a travel experience that’s uniquely yours. It’s time to turn those loyalty points into unforgettable adventures.
Step 5: Analyze Your Spending Habit
Finding the perfect rewards card is like discovering a sidekick that just gets you. You don’t want to overhaul your spending habits just to chase rewards – that’s like trying to fit a square peg into a round hole. Instead, look for a card that high-fives your usual spending groove.
For instance, if you’re the kind of person who practically lives at the gas pump, frequents grocery stores like it’s a hobby, or has a standing reservation at your local diner, there’s a rewards card out there nodding in approval. It’s all about aligning your card with what you’re already doing, no acrobatics are required.
Now, if you’ve got a wanderlust bug and your Instagram is a scrapbook of exotic locales, a travel rewards card might be your ticket. Imagine earning rewards on your travel purchases and then cashing in those points for your next adventure – it’s like turning your everyday spending into passport stamps.
And hey, if you’re a die-hard fan of a specific store or hotel chain, there’s a card with your name on it. Co-branded rewards cards are like a secret handshake between you and your favorite brands, unlocking perks and exclusive treats.
But here’s the real talk: don’t get swayed by flashy intro bonuses that demand you break the bank. Your perfect card should jive with your spending rhythm, not force you into a financial limbo. So, whether you’re a budget maestro or a savvy spender, there’s a rewards card out there waiting to join your journey – no financial acrobatics required.
What Factors Do You Need to Consider Before Getting a Reward Credit Card?
Just following the right guidelines isn’t enough to choose the right rewards credit card for you. It sure will make you eligible for the right one but you also need to check out some factors for selecting credit card rewards.
So let’s just read below to find out.
Factor 1: Your Spending Habit
Picking the right rewards credit card is like finding a sidekick for your spending style. Think of it as a match made in budgeting heaven. Whether you’re a foodie, a jet-setter, or an avid shopper, there’s a card that speaks your language.
Start by playing detective with your expenses – dining, travel, bills, fuel, you name it. Break it down, and see where your money’s hanging out the most. That’s your cue to channel those everyday spends into earning those sweet reward points.
So, don’t just swipe and forget. Let your spending habits be the guiding stars to the perfect rewards card for you. It’s like turning your regular purchases into a VIP pass for perks. Your budget holds the key – unlock the rewards that match your spending groove.
Factor 2: Check Interest Rates
When hunting for a rewards credit card, keep your radar on for interest rates – it’s like the fine print’s secret handshake. Aim for a low-interest card to keep balance costs in check. Some cards even flaunt a sweet 0% APR upfront, but don’t forget to peek at what the regular rate becomes later.
Watch out for hidden fees too, like the annual fee or any sneaky balance transfer charges. It’s all about finding that sweet spot – where rewards shine, and costs stay low. Before you commit, cozy up with the terms and conditions. Think of it as the card’s love letter to you – read it, know it, and make sure it’s a match made in credit card heaven.
Factor 3: Have a Repayment Plan
A repayment plan is like your financial GPS, helping you navigate debt without wrecking your budget. Ideally, only spend what you can click away, but hey, we’re human. That’s where a repayment plan swoops in.
Now, everyone’s plan is a bit like a fingerprint – unique. Your debts, amounts, and monthly budget dance together. Ask yourself: Are you in a race to squash debt ASAP, or are you more of a slow-and-steady wins-the-race type?
If speed’s your game, try the “Snowball” – tackle the bigger debts first. Or go for the “Avalanche” – knock out the higher-interest ones pronto. It’s like picking your battle strategy.
And hey, there’s the balance transfer trick too. Swap your credit card to one with a friendlier interest rate. Most banks offer this move; just make sure your shiny new reward card is on the list.
So, whether you’re sprinting or strolling to debt-free bliss, your repayment plan is like your budget’s BFF. It’s not just a strategy; it’s your financial cheerleader, rooting for you to click away debt one smart move at a time.
Factor 4: Rewards Value
Don’t just hoard points – make them work for you! When diving into rewards credit cards, check out what each point brings to the table. Think of it like your personal points menu – some cards dish out more for travel, others for online splurges.
Pick the card that dances to your tune, offering the most bang for your buck in the categories you love. And don’t forget the cashback twist – it’s like the icing on your rewards cake. So, go on, find the card that turns your points into perks that make you smile. It’s not just points; it’s your ticket to personalized rewards bliss.
Factor 5: Check the Annual Fees
Annual fees are like the VIP entry ticket for your rewards credit card, so give them a friendly nod before diving in. Not all cards have them, but some of the flashier ones might ask for a yearly fee.
Before making any commitments, take a peek at what that fee looks like. Here’s the deal – if a card throws an annual fee your way, make sure the rewards it dishes out are worth it. It’s like paying a cover charge for a party – it’s cool, but the party better be epic. So, balance the fee with the perks, and choose the card that’s a high-five for your wallet. It’s not just a fee; it’s your backstage pass to rewards worth every penny.
Factor 6: Redemption Options
Let’s talk redemption – the sweet temptation that makes us snag a rewards credit card. When you’re picking one, take a peek at the reward redemption menu. It’s like choosing your own adventure, with categories like shopping, flights, hotels, and even the noble act of paying off your credit card bill.
Make sure your hard-earned points have a purpose for your dig. It’s not just about points; it’s about turning them into something awesome – whether it’s a gadget, a getaway, or a guilt-free swipe on your bill. So, pick the card that makes your points feel like little treasures waiting to become your next favorite thing. It’s not just redemption; it’s your rewards story unfolding.
How to Compare Reward Credit Cards?
You will find a lot of rewards credit cards up for grabs in front of you. But which one to choose? In this case, you will need to compare a few things to get the right rewards credit card.
So, alright, let’s decode the credit card game.
Annual Fees
Not all cards have them, but the fancy ones might. Before you commit, check if the fee is worth the rewards. Splurging on a hefty annual fee? Make sure you’re a big spender; otherwise, it might outweigh your rewards.
Interest Rates
They sneak in after that tempting 0% APR honeymoon. Keep those balances in check; otherwise, interest charges could crash your rewards party. It’s like avoiding a surprise bill after a good time.
Rewards Structures
Some play favorites, others keep it steady. Tiered cards have different rewards for different buys, like more points for gas, and less for groceries. Fixed cards keep it simple, offering the same rewards no matter where you swipe.
Cashback Cap
Some cards throw a limit on how much you can earn. Imagine a 3% cashback cap on your grocery binge; after hitting a spending limit, it drops to 1%. Sneaky, right?
So, pick the card that matches your spending dance. It’s not just about the rewards; it’s about playing the credit card game with style. Swipe wisely!
Bottom Line
Finding your credit card soulmate is like a personal matchmaking journey. Dive into your payment quirks, peek at your credit score, and dream about the rewards you want. It’s like crafting your wish list.
Sure, it takes a little time to figure it all out, but trust me, the matchmaking effort pays off. When you land that perfect card, it’s like unlocking your spending superpowers. So, invest a bit of time upfront, and watch it return as the ultimate credit card bliss. Swipe right on the one that gets you!
