Rewards Credit Cards An Overview Most of the credit cards that exist today will charge you every time you use them. However, there are also others that will willingly provide you with incentives whenever you spend. These cards are known as rewards credit cards. They may come in a variety of forms but they will surely give you benefits especially if you use your card more. The amount of money or the rewards that you get will depend on your expenses. In general though, you will earn a specific percentage or amount for every dollar you spend using the credit card. Rewards Offered The rewards come in three categories: miles, points, and cash. Bear in mind that only one of these will be given to you by the rewards credit card that you own. Cash rewards are considered the easiest to use out of all the three categories. However, it should be noted that cards that offer cash as rewards may not necessarily give you cash directly. Oftentimes, this type of reward will be credited into your account. Other companies will make a deposit into your account or they can send you a check if you are ready to redeem your reward. In other cases, such incentive will be given in the form of a gift card from the merchant partner of your card issuer. Meanwhile, point rewards are provided each time you spend a dollar. For instance, if you spend a dollar, you will get one point. These points can be redeemed for the product or service provided in the rewards program. Depending on the company, you may be allowed to redeem the points for travel, cash, or gift cards. Examples of cards that provide points as incentives include hotel and auto cards. Miles are also known as travel rewards. You can use these to purchase airline tickets. The credit card issuer will tell you the number of miles that you can possibly earn to convert the points into a ticket. Usually, this will also take into account the frequent flier program. You may also be allowed to exchange miles for programs, but oftentimes, the points you have earned will be lost during the process. Reward Card Tips Cards that offer rewards can be convenient and satisfying. However, if you are not careful, you might end up overextending yourself as you chase more rewards. This will clearly lead you to debt. Prioritize your credit score and your payments to keep yourself from owing money. It is significant that you do your best to pay your monthly balance in full. This is quite essential especially if you have a high interest card. Remember that if you have a balance, the charges on your credit card will immediately overcome the benefits that you receive. You should also prevent yourself from spending more than you can pay just so you could obtain more rewards. It is also useful if you do not max out on your reward card or go beyond your credit limit, though you can afford it. If you do not want to have problems with your credit score in the long run, you should always consider your payments and your debt level. Learn more about rewards credit cards at the Card Rewards blog.