Rewards credit cards are the most popular as they are designed to reward your purchases, usually in the form of points, miles, or cash back. They're a good option if you pay your balances in full each month; but if not, you will lose the rewards for the interest generated.
In addition to receiving rewards for your spending, the best rewards cards come with generous welcome offers and many features and benefits, like cost-saving purchases and travel protections.
Benefits of rewards credit cards
· Exclusive rewards are designed for your spending: supermarkets, restaurants, gas stations, shops, car rentals, insurance payments, travel protection, etc.
· High-value rewards.
· Attractive welcome bonuses.
How to choose a rewards credit card?
If you're a daily shopper or frequent traveler, a rewards card is for you in addition to paying off your card balances in full each month. With dozens of categories to get benefits for purchases, you must compare, choose and apply to the one that suits you best. For example: if you drive long distances and tank several times a week, there are cards designed for you.
How much are reward points worth or represent in money?
This depends on how you redeem them. You can typically earn 1 cent per point in value when saving for travel on the issuer's website. However, you may have the option to transfer your points to an airline, which can increase their value. You may also have the opportunity to redeem points for gift cards or even cash back.
How many reward points can I earn?
The potential to earn points depends on how much you spend on the card and whether the card offers unlimited rewards. Some cards do not limit matters to be acquired, while others may decrease the rewards rate after reaching a certain spend point.
What credit score do I need to apply for?
Most rewards cards require at least good credit, starting at 670. With very good or excellent credit, you may have access to better rewards credit cards. If you're below this, though, don't worry, there are cards out there for you, though the reward rates are modest.
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