August 6th, 2012
5 Tips for Picking the Right Rewards Credit Card
We know from last week’s blog post that great credit card offers might soon be a thing of the past. But you can still get great over-time rewards with your plastic, if you choose wisely.
Here are five things to pay attention to when picking a great rewards credit card.
Rewards You Can Use
One of the biggest mistakes you can make when searching for a new card is to choose one that gives you rewards that you won’t actually use. What’s the point of racking up airline miles if you’re terrified of air travel? Instead, focus on those rewards cards that will get you what you want, whether it’s cash back—like Blue Cash Everyday Card—hotel perks or special event offers.
Apply for the Blue Cash Everyday Card
Interest That Doesn’t Eclipse Rewards
Cash back is great, isn’t it? But if you tend to leave a balance on your credit card from month to month, and your interest rate is sky-high, you’ll likely pay more in interest than you’ll receive in cash back. That rewards card just turned into a regular, boring credit card, didn’t it? The best thing to do is to set a precedent that you’ll never leave a balance on your credit card. Alternatively, do the math to make sure that the cash back rewards you receive each month is more than the interest you pay. Or choose a rewards card with a lower APR, like the Discover It card.
Apply for the Discover It Card
The Annual Fee
Don’t get me wrong, paying an annual fee can be worth it if you’re getting amazing rewards. But for some cards, even a low annual fee can cancel out the benefit of rewards. If you’re not sure if you’ll be able to rack up enough rewards to warrant paying an annual fee, get a card that comes fee-free, like the Capital One Cash Rewards card.
Apply for the Capital One Cash Rewards Card
Revolving Cash Back Categories
Some of the best rewards cards offer 5 percent cash back on your purchases. The catch? You have to make sure you enroll in the seasonal category before the deadline. These big-bucks categories typically change each season, so to maximize your rewards, you have to be paying attention. If you choose the Chase Freedom Visa, make sure to mark on your calendar when it’s time to enroll in the next cash-back category.
Apply for the Chase Freedom Visa
Bonus Offers
Get ‘em while they’re still here! These offers usually include bonus cash back after you spend a certain amount. The Blue Cash Everyday Card will get you $100 extra if you spend $1,000 in the first three months. However, the cards that give you the best bonus offers usually require a higher credit score for approval. For instance, according to Credit Karma data, the Blue Cash Everyday has an average approved credit score of 732. Check Credit Karma’s credit score approval data before you apply for a big-bonus card.
Apply for the Blue Cash Everyday Card
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Just wanted to mention to CK that the new US Bank Cash+ Signature Visa is impressive. I looked through your card list for reviews on it before I applied but only saw the Flex Perk without comments. I know the Cash+ card is a new 2012 card for US Bank. I applied 2 months ago, approved and using it heavily. So far I am impressed. I have been though my first statement and the rewards are huge. I love that you can choose your own categories each quarter and they offer a $25 bonus when we wait until you have a min of $100 in rewards to redeem. I have an AMEX BLUE & GOLD along with a Discover and Venture card and now the Cash+ has become my #1 go to card because of the rewards. I am getting 5% on anything bill payment (utility, gym, ins etc) which is major for me & 5% on fast food, plus 2% groceries and 1% on everything else. Of course you can choose/change your 5% and 2% quarterly based on what you will use the most for that time period. The card also had a 0% balance transfer and benefits of a signature visa like AMEX Gold but with no annual fee. I think member should consider this card, if US Bank doesn’t change the choose your own rewards option, I will likely keep this card forever and use it for everything I do. Getting 5% back for paying my electric bill and doing yoga is a dream.
Thanks so much for sharing your experience, Janine! I’m so glad you found a card that truly works for YOU (like the post says). We’re constantly adding new cards to our system, so this one may be added in the future. Then, you can add your own review of it!
credit card is a most important thing our daily life. approved and using it heavily i am impressed.
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