Best Reward Credit Cards
Rewards credit card offers come in a variety of forms. However, the best rewards credit cards share one thing in common: no annual fees. For the most part, cash back rewards credit cards offer fee free rewards, competitive interest rates, and good 0% APR deals. Travel and airline rewards credit cards are also popular, but many come with hefty annual fees and above average interest rates. While frequent flyers and heavy spenders can more than make up for these fees with the rewards they earn, casual credit card users are often better off sticking to a credit card that charges a lower interest rate.
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The most popular and, in my opinion, the best credit card rewards programs don't give out miles or points. While fun to collect, these rewards often provide much less value and come at a much higher expense than cash rewards. With most cash rewards credit cards, you earn 1-2% on purchases. This money can then be accessed when you hit your credit card companies redemption threshold, which is typically about $25.
Unlike miles or points, cash back rewards can be used however you like and with no blackout dates or restictions. The same cannot be said about other types of rewards credit cards. With a travel rewards credit card that offers airline miles, you will likely need to collect tens of thousands of reward miles before you can use your miles. And with many airline rewards credit cards carrying substantial fees of $50 to $100, you can easily end up paying more in interest and fees than your rewards are worth.
Point rewards credit cards present their own set of problems. While credit card points are easier to use than most airline miles, the value of these points can be decreased at any time. One day, it can take 5,000 points to get a reward worth $50. The next day, it could take 10,000 points. Ultimately, you are at the mercy of the credit card company. This is also a major problem with airline rewards credit cards. One day, an award seat may cost 25,000 miles. The next it could be 40,000 miles.
Another key problem with point and travel rewards credit cards is that the value of the points and miles you earn is often less than one cent. While it may not seem like much, it can add up over time. Thus, the best rewards credit cards are those that offer cashback rewards. These rewards are the easiest to use, have a stable value, and often have 0% APR credit card deals.
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Mile Rewards Credit Cards: Getting the most out of a Frequent Flyer Credit Card: Airline miles credit cards are among the most popular types of rewards credit cards. However, only a handful of frequent flyer miles credit cards provide great rewards and value. The reason for this is quite simple: most airline specific credit cards charge astronomical annual fees and high interest rates. Therefore, if you want to get free miles, airline flexibility, and the ability to save money on interest and annual fees, there are only four miles credit card applications you should consider.
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