Credit Cards

Which Card Has The Best Credit Card Rewards?
Doug Smith

Defined Tag: Best Credit Card Rewards.

The best credit card rewards are one of the criteria consumers look for when shopping for a card, besides the interest rate. Reward programs can be lucrative for the cardholder, especially if the bonus complements his lifestyle or career. On the other hand, card companies wouldn't offer these card rewards if they weren't still making a profit, so they're trying to entice as many new card applicants as possible. Let's look at some types of card bonus programs being offered.

One of the best-known rewards programs is the frequent-flyer miles program. Every time a consumer uses his frequent flyer Visa, Master Card, or other card, he is awarded travel miles based on the amount of the purchase. Sometimes the award is 1 mile per 1 dollar spent, or the ratio may be different. When the cardholder accumulates enough bonus miles, she is eligible to receive a free trip. The bonus miles might also be converted into other travel perks, such as free first-class upgrades, free rental cars, free hotel stays, and other things that benefit the busy business traveler. If you are shopping for a frequent flyer card, determine which purchases will earn you bonus miles. With some cards, every purchase made with the card earns bonus miles, while other cards only allow travel-related card transactions to contribute towards bonus miles.

Discover Card is well known for its cash-back program. A certain percentage of every purchase made with the plastic is returned to the customer as cash. However, a minimum threshold of cash must first be accumulated before the cash can be received. If you manage your Discover account online, you will notice that you can receive the cash back bonus in several different ways. Cash back can be given as cash or check, as merchandise gift certificates to affiliated merchants, or even to pay off part of your balance.

Gas rewards cards are another popular choice. They work much like the previous two types of cards, except that instead of miles or cash, the user accumulates gasoline credits when using the plastic. When certain thresholds are met, the customer is allocated free gas, such as a fixed dollar amount, a free fill-up, and so on. The Kroger 1-2-3 Rewards MasterCard is a good example of a gas reward card. When used to buy a cumulative amount of groceries (typically $100), the card holder usually receives $0.15 off each gallon of their next gasoline purchase at a Kroger gas station. Since the Kroger station is typically in the parking lot of the store in which the groceries were purchased, the customers can take advantage of their discounts immediately.

Interest rates are not the only criterion for choosing charge cards these days. Look for plastic with the best credit card rewards and you can save money on purchases you will be making anyway.

This article is Copyright 2009 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. For Entertainment Purposes Only. Not Intended As Financial Advice. Consult Your Own Financial Professional.