Credit card companies compete for your business by offering
their lowest rates and fees to the best borrowers, sure, but they also offer
rewards programs. Credit card shoppers can choose from rewards such as free
gas, cash back, frequent flier miles and plane tickets, gift certificates to
popular stores, and many more. But do your homework before you sign on for a
rewards program, and make sure you know exactly what you're getting.
How are points accrued?--Many rewards programs offer
extra points for certain kinds of purchases. A card offered by a grocery store,
for instance, may offer double points on groceries purchased at their store. If
you spend a lot of money in one place, try to find a credit card that rewards
you for spending that money. Other cards may not offer points for all
purchases, so be sure to read the rewards information carefully.
What rewards are available--If you enjoy travel, then
you're in luck--many credit cards offer excellent travel rewards. Other
consumers would rather get cash back from their purchases, or free gasoline.
Consumers who are looking for a new credit card will be able to find many
low-interest credit cards with a variety of rewards. The smart consumer finds a
rewards package he or she will utilize.