3 Credit Card Rewards Every User Should Know Of
Today’s world provides everyday consumers with what seems like an endless amount of credit card options. While they all claim to be the best, some are better for you than others. The card best for you will largely depend on your budget and your spending habits. Regardless of the card you choose, most cards these days come with a reward system. Here are three credit card rewards every responsible card user should take advantage of.
Have you ever heard of people who say they basically travel “for free” because of their credit card rewards? If you thought they were joking, think again! Some credit card travel rewards are so generous that many can afford to take a solo trip just from one year of spending. If you have a family, a staycation might be more likely, but that is still a free trip nonetheless! How much you earn in travel rewards also depends on how much you spend throughout the year and the type of card you pick.
If your goal is to earn travel points and miles with your card, then choose cards the specifically boost travel points each time you spend money. Some cards even give you extra points if you set them up for autopay on some of your bills. Research the different cards available and choose the best for your spending habits. Some even offer bonus travel points when you open an account with them, which gives you a head start on reaching that dream travel destination.
If you just don’t have the wanderlust and would rather receive benefits on things you use every day, then a gas rewards card could be the perfect fit for you. In fact, this card might be better for you for the simple fact that you drive a lot for work every day. Or maybe you have several kids, all with evening extracurriculars, and you need to lighten the load from so many trips to the pump. Just as with the travel rewards, the card you pick has a huge influence on the number of gas points you accumulate. Some cards are modest and offer a 1% on all purchases. Other cards give extra incentives and offer up to 4% back the first year with an extra 3% back when you spend on restaurants. That’s a huge difference in the money you’re getting back!
In an ideal world, we would all get cash back from all the money we spend daily. Well, that ideal world exists if you choose that type of rewards card! Yes, rewards cards that give you money back for your everyday purchases exist, but they’re not all the same. With these types of rewards, you’ll have to be a little more cautious about which you choose. Reading the fine print is important, as some of these cards have conditions and limits that they apply to user spending.
For example, you might read a card that says it has 5% cashback on monthly spending. This is a great deal! The fine print, however, says that the 5% back only applies to certain categories of spending. It may also state that the 5% rate drops to .05% after you already spent $1500 in a month. So, in reality, the credit card user is getting 5% back on meal and hotel purchases as long as they stay under $1500. That completely changes how generous the card seems, doesn’t it?
Credit cards, when used responsibly, can provide great benefits to all users. Whether you are interested in travel, cash back, or even returns on everyday gas purchases, there is a card out there for you. If you have any questions on how else you can save or plan for your financial future, contact us! Since 2008, we have specialized in providing people with stellar loans and sound advice.