As a way to hook consumers, majority of credit card providers offer cash rewards in exchange for your loyalty. If you’re especially a frequent credit user might as well make the most of your rewards, right? Whether you want to earn enough airline miles so you can travel for free or you want those cash backs, below are things you can do to maximize what your credit card can offer in terms of rewards.
But first things first, before you can avail of the rewards, you’ll need to first understand what type of reward you want so you can look for the right type of card. Remember that different types of credit cards offer different types of rewards. Also important is to consider other key factors such as interest rates, APR, credit limit and annual fee among others things when looking for a card to apply for.
If you’re ready to maximize your rewards, here are three types of credit card types and rewards you need to know about:
Travel Rewards Credit Cards
If you want to take that domestic flight for free, you’d be wiser to opt for credit cards that offer a generous sign up bonus miles. Some credit card providers, for instance, offer up to 50,000 miles in bonus when you sign up which you can either save up for later or convert into a free airplane fare. When you hit the spending requirement for the first 3 months, you may also earn more miles. Later on, you can earn set miles per sterling pound you spend using the card.
Travel rewards cards, however, is not for everyone. If you’re not a frequent flier and you don’t spend much on airline tickets, this might not be a good option for you. And before signing any dotted line, make sure you’ve investigated the fees that come with the card.
Cash back credit cards.
If you’re not a frequent flier, the next best option is credit cards that offer cash back rewards. Like the name of the reward suggests, these type of cards offer you the opportunity to earn cash back for every sterling pound you spend using the credit card. In general, you can earn about 1 to 2% or sometimes more of the total amount charged per month.
For example, let’s say you spend £3,000 in credit card purchases for the month of April. Since your card specifically offers cash back, you may expect to get back 1 to 2% of that amount which means about £30 to £60 depending on your issuer.
To make the most of cash backs, you need to make sure you got the right card in the first place. Some cards, for instance, offer up to 5% cash back depending on the type or category of the charges. Research is the trick to ensure you’re going to get it right.
Gas Credit Cards
Another type of credit cards that has been widely popular among consumers is the gas credit cards. This type of cards is especially designed for people who spend most of their time on the road. Rather than pay for cash every time you buy gas, you can use your credit card to save some money on your transportation expenses each month. If you’re lucky, your credit card may not only offer gas rewards but also added perks like cash back.
Just a word of caution though. Some gas credit cards are found to charge higher interest rates than your typical credit card. In this case, you need to be really careful with your option. Otherwise, you’re only going to throw away those rewards down drain since you’ll end paying higher interest rates in the end.