Choosing a credit card is one thing. Choosing a credit card with a rewards system, that is even better. Nowadays, you will notice the majority of the major credit card companies offer some sort of rewards system to their clients.
There are two types of rewards – cash back or points. Both have their perks depending on where you shop and what you want in return. For the cash back cards, they are simple and give you a return on what you spend all the time. Point cards allow you to accumulate points over time which you can redeem for merchandise, travel and gift cards.
So which is the best one? Well, that all comes down to your preference of whether you want points or cash back. Either way, there are a few things to keep in mind while you look around for the best rewards card.
Look at the Top Rated Cards and Companies
The best spot to start at is by looking at the top rated reward credit cards available. You can see what is available, what other people are saying about them and what kind of rewards they offer.
For 2018, AMEX credit cards were selected in this Canadian list as top options for reward cards. The fees versus the annual travel rewards and earn rates made this card one of the most popular choices. So look around and see which ones are highly sought after by people similar to you.
Consider the Monthly and Annual Fees
Because these are still credit cards, you will always want to take into consideration the fees associated with them. Typically the higher the fee for the card, the more points or cash back you will get in return. Ones with no fees will have a lower earning rate.
Pay attention to how much you would be spending just to have the card. Will you use it enough, so the rewards outweigh the fees? Or is the card going to sit in your wallet more often, meaning you’ll be paying fees for barely using it? Compare how much you’ll spend in fees versus how much you will earn in rewards.
Read the Fine Print
Credit cards can be tricky and catch you off guard. Lots of times when reading through the rewards programs and fees, it may look good at the start. But when you go to read the fine print, they might have stipulations to achieve those rewards.
You may find to reach their promised percentage in cash back or maximum amount of reward points, you have to spend a minimum amount either monthly or yearly. There’s the possibility of restrictions put in place and caps that make it harder to earn the top amount of rewards, So make sure to read any fine print and look for catches that would significantly affect your card choice.
There are a lot of benefits of going with a rewards card. Many people go on yearly vacations for little money because of their points. But remember those are still credit cards and should still be taken seriously.