What Makes for a Great Rewards Credit Card

Written by: Valencia Higuera

Credit card reward programs are highly popular and plentiful, and if you’re in the market for a credit card, several reward credit cards are worth consideration. Research any credit card company and you’ll find that most companies offer at least one rewards credit card. The particulars of reward programs vary, but they work pretty much the same way — earn reward points for every $1 spent. Reward points can be awarded as miles or points toward gift cards and other merchandise.

If you’re ready to apply for a credit card rewards program, don’t select any type of program. There are certain features to look for when shopping for a rewards program. Here are a few tips to help you recognize a great rewards credit card.

No Annual Fee

Research different reward credit cards and you’ll discover that many card companies charge an annual fee. This is the price you pay for earning miles and cash back. But while many reward credit cards do charge annual fees, you can find a rewards credit card with no annual fee. The Capital One VentureOne rewards credit card lets you earn 1.25 miles per every $1 spent and there is no annual fee. Other credit cards that offer rewards and charge no annual fee include the Citi ThankYouCard and the Discover More.

Bonus Points

If you’re going to apply for a rewards credit card, it only makes sense to get the most bang for your buck. There is a lot of competition in the credit card world. With so many credit card options and reward programs, credit card companies constantly offer promotions to stay ahead of the game. This includes giving bonus points to new customers who spend a certain dollar amount within a certain amount of time. A great rewards program offers a top-notched sign up bonus.

For example, the Capital One Cash Rewards credit card offers a $100 bonus after you spend $500 in the first three months. Other credit cards with similar promotions include the Chase Freedom Visa and the Citi Dividend Platinum Select Visa. If you’re looking for a travel rewards card, the Gold Delta SkyMiles credit card offers 30,000 bonus miles when you spend $500 on the card within the first three months, and the Marriott Rewards credit card offers 30,000 bonus points after your first purchase – redeemable for up to four nights free.

Interest Rate

The annual fee isn’t the only cost associated with a rewards credit card. Annual fees are paid once a year, but interest fees are paid each month. Interest is what you pay for using a credit card and this amount is based on your account balance. When looking for a great rewards credit card, keep an open eye for credit cards that offer a low introductory and standard interest rate. A credit card company might charge as much as 20% interest. Take your time, research different cards, and you can find a company that offers 0% interest for the first 6 to 15 months and a low rate thereafter.

Options include the Miles Credit Card by Discover that features 0% interest for the first six months on purchases and balance transfers, and then a rate as low as 10.99% thereafter. Other reward credit cards with low introductory rates include the Blue Sky from American Express, the Citi Diamond Preferred Card and the Citi Forward Card.


What Makes for a Great Rewards Credit Card

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