The process of comparing card rewards, benefits and conditions may make you wonder Is the reward card worth it?. But you’ll get the most from you Reward Credit Card By choosing a card that corresponds to your expenditure style.
When you break it down, there is only a handful that needs to consider the type of reward you want to earn, the type of spending habits you spend, the features of your card, and whether you qualify for the card.
Dave Grossman, founder and CEO of Best Credit Cards, owns approximately 45 individual and small business credit cards. He chimes in these four steps to choose a reward card.
Decide what type of reward you want to earn
The first step to find the best reward card for you is to narrow down your search Types of rewards You want to make money. Different cards earn different types of rewards.
“I personally collect reward points for luxury travel,” says Grossman. “For me, it’s about having an experience that never springs up in cash.” He pays for first-class and business class international flights and five-star hotels.
If you mainly want to pay your daily expenses or keep it simple, Cashback Card It might be the best. If you want to earn points or miles to redeem for your trip, Travel Card Or maybe an airline card is the better option.
Classify the largest costs
The main long-term value of a reward card is the rate of return at the time of purchase. So you want to choose a card that offers the highest possible price Acquisition Possibility In the purchase category you spend the most.
If you spend most of your money on a trip, it makes sense to choose from one of the best travel credit cards. For those who love to eat out, Restaurant credit cards You can earn cashback. If you’re a home cook, you’re one of them Credit cards that reward the best groceries It might suit you instead. If you’re looking for the best of both worlds, Capital One Savor Cash Rewards Credit Card A great option.
Everyone needs to have cards that maximize each of their biggest spending categories, and they should become standard cards in your wallet.
– Dave Grossman, Founder and CEO of Your Best Credit Cards
Compare the features and benefits of the card
Now that you know what type of reward you want to earn and where you’ll do most of your spending, you’ll create a list of cards and compare features. Here are the perks to consider:
Welcome bonus
The Welcome Bonus is a sign-up offer that encourages new cardholders to apply for credit cards. After meeting minimum spending requirements over the first few months, it may come in the form of additional cashback, points, or miles.
“The massive welcome bonus offers stay with me, especially when it comes to offering new cards,” says Grossman.
Best Credit Card Sign Up Bonus Because you will be something that can be easily achieved with your current budget. You can also use your card for large future purchases to plan to earn such a welcome bonus, charge your card for daily expenses, or aim to reach the spending threshold like that. for example, American Express Blue Cash Preferred® Card After spending $3,000 in the first six months, you’ll receive a $250 welcome bonus. This is the amount that can reach many cardholders thanks to bonus spending requirements just daily spending.
0% Intro APR
Some reward cards offer an introduction to 0% annual rate (APR) on purchases, balance transfers, or both. These promotions often last for 12 to 21 months; Pay for bulk purchases Or consolidate credit card liabilities without paying interest for a certain period of time.
When thinking about new credit cards, if the long intro APR offers are at the top of the list, check out today’s picks Best 0% Interest Credit Card.
Additional perks and benefits
Credit card perks can provide a lot of value if you make the most of them. Some cards offer travel benefits such as lounge access, a complimentary first check bag, companion flight tickets, and travel insurance.
Capital One Venture X Rewards Credit Card It combines many of these premium profits all together, including priority pass lounge access, $300 per year travel credits, and unlimited travel protection on a comprehensive visa. For low-cost alternatives, Chase SapphirePreferred® Card ($95 per year party), 3x points in dining, 5x strong value with Chase travel booking and robust travel insurance.
Others provide Benefits under the radar Rideshare credits, access to special events, mobile phone protection, extended warranty and more.
“What always catches my attention is the bonus multiplier for categories I spend on many categories (and if there are restrictions that I have to book through the issuer’s travel portal), how easy it is to use points, or if there are perks that the card doesn’t get anywhere else.
Grossman also suggests, “Everyone needs at least one card for travel with solid travel protection with travel delay insurance and primary car rental coverage.”
Make sure you are eligible for the required card
Not all credit cards are available to everyone. Card issuers usually provide the best benefits to customers with good or good credit scores.
When you apply for a card, the issuer will assess your creditworthiness with strict inquiries about your credit. These enquiries can temporarily lower your credit score by several points. Therefore, you should not apply for a card that is not eligible.
Check your credit score Make sure you meet the minimum eligibility requirements for your card. That’s a good idea to get Pre-approved or pre-qualified For the card you want, it will not affect your credit score. There is no guarantee that you will get a card, but you can see the possibility of approval.
You can either go to the issuer’s website or use third-party tools like Bankrate to prequalify or see if you have pre-approved your selected card. CardMatch™. This tool can indicate whether you are registered with a card you are seeing or similar cards from other issuers.
Conclusion
Choosing the right reward credit card will help you earn money with everyday purchases and reward things that matter to you.
“As long as you pay in full every month, I think it’s pretty difficult to regret getting a reward card,” says Grossman. “The worst case scenario is to realize that it’s not for you and that it won’t be updated in the second year. But as you can see from my collection, I tend to hold cards in the long term and maximize the benefits of each one.”
one time Comparison Card Check out you based on revenue potential, fees, welcome bonuses, fees and other features Approval odds By pre-approval or pre-qualification. It’s only a matter of time before your next trip, concert, or grocery run is covered with rewards from a new card.
