Rewards or Cash Back – Which credit card is better?
If you’re looking for a new credit card banks Impresses you of rewards and cash back offers. But what is the offer right for you? We can help you to make your decision.
The first step is to understand the difference between the two types of cards. While gives you cash back credit cards, money based on the amount spent from the card, offering you credit cards based on rewards privileges versus how much you spend. This could be a bonus air miles replaced flights in, or loyalty points can be redeemed for products retailer or instant privileges such as playing golf or enter airport lounges, health clubs or discounts at restaurants and shopping privileges.
The Cash Back card privileges is to you fully know what you’ll get in return for what it spends (ie, deduction of money). As you can spend that money anywhere. The rewards cards useful for those who want to Earn things related to his hobbies, travel miles for lovers of travel or free products for football fans.
The second step is to choose any type of card suits. We offer you the following, five factors you should take into account when a choice of two types of cards:
Decide what you want
The simplest way to choose between a credit card or cash back credit card rewards is to know what is important for your lifestyle. If you golf first, do choose rewards card offers you free tours and discounts at clubs. But if shopping is your passion, then it will earn cash back on those expenses is better for you.
Is it worth it?
The offers attractive, but it is useless to acquisition card that has not been able to assess what you’ll get in return for your spending. Therefore, we recommend that you evaluate the My Account for each scheme to choose the winning card.
For example, if the card offers rewards for miles flown, know what proportion of spending necessary to get them. For example: If there are two cards that provide one mile for every dollar they spend, but loyalty to the first program requires 42,000 miles to travel to London, while the loyalty program for the second card requires 60,000 miles for the same trip, it would be easy to figure out which cards are the best.
Cash Back cards aimed at general categories such as expenditure on public services, in retail stores or supermarkets. They can also provide cash back on flights or vacation bookings, and here you need to do a quick calculation. In case you have not Cash Back card to cover the flight expenses, card air miles would be a better alternative.
Use iT or lose It
Whatever the type of card that , make sure you’re actually use, where you will not earn rewards or cash back, but when you spend. Instead of using cash, checks or exchange cards in their daily spending, carry your card purchases food supplies household expenses or monthly labor expenses. It is estimated that make you earn without any cost to you, provided that full pay your bill each month.
Non conditions perfectly illustrated
For rewards cards, they are often given a specific ceiling. For example, some travel rewards cards, restricts air miles that you can earn 4,000 air miles for every $ 1,500 spent.
As for the cards Cash Back, In general, the fact that there is a ceiling on monthly amounts that can be obtained in each category. For example, the maximum amount of cash back on public services billing expenses of US $ 300, or $ 1,000 maximum to the supermarket expenses. Be aware that some banks also bar you from your right to Cash Back in case of delayed payments or if you skip the roof of your credit card.
Many of the cards come huge annual fees, if those fees were higher than the value of rewards or cash back value obtained by contrast, the card is not worthy of being acquired.