Credit Card Rewards
Nowadays most credit cards have rewards. In this article I will describe the different kinds of rewards available. There are airline miles, auto, cash back, gas, and hotel/travel.
With an airline miles card you earn either points or miles for every purchase you make. Both can be exchanged for round trip airline tickets. Some cards give you bonus miles when you sign up, but you will have to look at each card carefully because their rewards vary.
Another kind of credit card reward allows you to earn money towards your next vehicle purchase. Each card differs in what percent of your purchases you earn, but most are 1% to 6%. If you are planning on buying a new vehicle in the next couple of years you should check out these cards.
If you aren't planning on getting a new card; you will find cash back cards offer a better reward. Depending on the card, you will receive 0.5% to 5% cash back. This can really add up. Let's say you charge $1,000 a month. If your card offers a 5% rebate, it will come out to be $50 a month or $600 a year that you have earned. And with the same charges, a 1% rebate will earn you $10 a month and $120 a year.
Another cash back reward is gas cards. These offer 5% to 6% cash back on all purchases made at gas stations. If you have a long drive to work, take frequent road trips, or spend a lot of time driving your kids to activities you will find this card to be very rewarding.
Finally if you like to travel and stay at hotels you find the travel credit cards to be extremely helpful. They offer points for every dollar you spend. These points can be exchanged for discounts on hotels and airline tickets.
Many of these cards require you to have average to good credit, so if you don't, please check out our section of credit cards for people with poor credit.