It is easy to find a credit card that offers rewards for membership but not all cards are created equally.
There are, however, three very simple things you can look for to make sure you are getting a good value.
When you are on the market for a new credit card, there are many factors you will have to consider. With the wide range of interest rates and special offers you will find, it can be quiet a daunting task to determine which one is right for you.
Fortunately, there are three basic factors to consider above all others that will help you figure out which new credit card offer is right for you.
First of all, you will want to look at the interest rate and fee structure. If you notice, these are not direct benefits that you get (like rewards points or rebates) but they are the most important factors to consider because they will affect you every single day that your account is active.
Basically, rewards cards tend to carry interest rates that are slightly higher than basic credit cards that are designed to simply provide consumers with access to credit. This is also true of their fee structures. Rewards cards will either charge more in fees per issuance or will be designed with more opportunities to assess fees.
In terms of interest rates, for example, the average interest rate on rewards based credit cards seems to fluctuate between 14 and 22 percent so you should definitely shy away from anything on the higher side of this scale.
You can sometimes find cards offering rates as low as 10.99 percent, especially within the Discover catalog (whose high-rate limit is also somewhat generous, nearing only 20 percent). Still, regardless of what rate you have you can always get your account going and then request a rate reduction after an appropriate amount of time (during which, of course, you will have established a good rapport).
Another rewards credit card stipulation that you will want to consider is how the rewards are setup. What you are looking for is a new credit card that offers a high payout of rewards on things that you either buy the most or will utilize the most.
For example, if you are a frequent flyer, you should definitely look for a card that offers rewards points or discounts on things like airline miles, rental car reservations, travel insurances, and more. On the other hand, you might prefer a credit card that simply offers rebates on things like gas and groceries; things you use every single day.
Many people, of course, exhibit spending that is quite varied. There are many cards that might also benefit this community too. Sometimes these cards have a rotating stock of benefit categories that change every month and sometimes there are cards that simply provide excellent rebates on a more concentrated market (like, say, home improvement or entertainment expenses).
Finally, if you want to get the most out of your new credit card rewards you will want to find a card that is easy to understand. That is to say that you will want a credit card with terms that are clear and concise but also one whose rewards are simple to earn and easy to redeem.
Make sure that you understand the program before you apply for the card so that you can have a plan for the best way to earn points or rewards. Of course, you will also probably want to have a strategy for maximizing your rewards and how you will redeem them so that you can use the card to its fullest potential.