By David
Though there are many types of credit cards available to consumers these days, the credit card with rewards that are available are arguably the most exciting. These cards give you something back simply for using the card and so long as you pay your whole balance within the grace period; your rewards are interest free. So what kind of rewards are we talking about? There are actually three different types of rewards programs that have become prominent in today’s credit card market.
Travelers Miles
One of the most common rewards programs available, and the one that has been around the longest is the frequent flyers miles programs. Often, these will be associated with a specific airline, which does restrict in a small way your ability to redeem your rewards. Even so, some cards offer a broader spectrum of airlines to choose from and even a few introductory perks like a large number of bonus miles after your first $1,000 in purchases over the course of your first 3 months. For a frequent traveler this can be one of the best credit cards with rewards.
Thank You Points
Another interesting type of credit card with rewards is the thank you point rewards cards. With these you typically will earn 1 point for every dollar spent on your card and will usually earn a large number of bonus points after spending a qualifying amount on your card in your first few months of using it. Each card has an associated online store where you can redeem your points for different types of merchandise, gift cards, and sometimes even cash. This flexibility makes the point rewards cards among the most versatile of the credit cards with rewards.
Cash Back
The final type of rewards cards and one of the newer available programs is the cash back rewards card. These cards will earn you cash back on many or sometimes even all the purchases you make on them and like the other programs have an introductory offer of usually around $100 for spending a qualifying amount in the first few months. Often times these cards will offer 1% back on all purchases and occasionally 2% on groceries and 3% on gas up to a certain amount each quarter. While not as versatile as a point rewards card as far as what type of reward you can claim, getting a percentage of your money back is always a nice perk. Some of these cards will even offer a little bonus on the amount redeemed (10% or so) for redeeming it to an account you have with the lender. This card is a great option for anyone looking to get a little extra cash back from their everyday spending.
Now that you have a good idea of what is available out there as far as credit cards with rewards go, you can pick your favorite type and start searching for the specific card that meets your needs. The options are numerous, so it is up to you to decide what works best for you.
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