Choosing Credit Card Rewards

There are many things to consider when you shop for a new credit card, not the least of which is the type of rewards a particular credit card offers. From frequent flyer miles to travel discounts and retailer gift cards to cash back to your account, there’s a wide selection of credit card reward programs to entice applicants.

Choosing Credit Card Rewards to Fit Your Lifestyle

Which rewards are right for you? The credit card program and rewards you choose should be based on your lifestyle. If you’re not a big traveler, it doesn’t make sense to choose a card with a program that pays you in frequent flyer miles or cruise vouchers. But if you like to shop, cards that offer redemption points or gift certificates to retail stores might be a perfect choice. It’s important to note, however, that the credit card reward programs available to you will be based primarily on your credit score; the higher the score, the most enticing the reward offers.

The Value of Credit Card Reward Points

The value of your reward points depends on your credit card, but they generally range from one cent per dollar spent up to ten cents per dollar spent. Many consumers choose to use their cards for most of their purchases — even groceries and gas — in order to accrue points, then pay off their credit card balance every month.

Most Popular Credit Card Rewards

While using reward points for gift cards or purchases at retail stores is one of the most popular ways to use reward points, there are other options. If giving to charity is a priority to you, you can choose a credit card that lets you make a charitable donation with your points. In many cases you’ll be able to redeem your points for cash either credited to your account or in the form of a gift credit card you can use almost anywhere. Or there’s always using your points to acquire more frequent flyer miles, usually one point for every mile you add to your frequent flyer account.

Know Your Credit Card Rewards Requirements and Limitations

In choosing a reward program, be sure to carefully review the requirements for qualifying for rewards as well as any limitations that may apply. These may include:

• Qualifying purchases. With some credit cards, not all purchases can earn reward points. Check the details of your credit card agreement for a definition of qualifying purchases.


• Time limit. Most reward programs offer a specified period of time that points can be redeemed. Any points you have earned that have not been redeemed by the deadline will be forfeited.


• A tiered reward system. Credit card rewards are separated into levels of varying value. The more qualifying purchases you make – or reward points you earn – will qualify you to select rewards of higher monetary values.