How to Choose a Rewards Credit Card

Credit cards now offer perks, or rewards, to their customers. When used responsibly and correctly, a rewards card can allow to earn free travel, merchandise and even cash. But you have to know how to pick the right card for you.

Difficulty: Moderate

Instructions

Things You'll Need:

• Credit card offers
• Time

1. Decide what you are most likely to use. Different rewards cards offer different perks, from free gas to hotel stays to points you can use to shop at certain stores. Figure out what rewards are most appealing to you, and then look cards that offer what you want

2. Compare how rewards are earned. Some cash back cards may not count groceries as “eligible purchases,” and other cards won’t credit you points for balance transfers to the card. Choose the rewards credit card that offers the most possibilities to earn rewards.

3. Compare rewards expirations. Some cards have rewards that expire after so long. Find out which cards have no rewards points expiration, or that have long expiration dates.

4. Compare other credit card incidentals. After comparing the rewards programs, look at the other credit card details, including introductory rate and length, APR, fees and penalties.

Tips & Warnings

• The best rewards credit card options are those that allow you to choose a variety of rewards.
• Some cards allow you to save money for others: charities, your alma mater, your children’s college education.
• Be sure to pay off your balance each month, or the interest charged will offset any rewards earned.