With All These Choices, Which Credit Card Should You Get

Category: Finance, Credit.

Consumers today are given more options when it comes to credit cards. With all these choices, which credit card should you get?

There are cash back credit cards that give away rebates or points equivalent to cash while some credit cards provide bonuses by means of rewards such as free travel, charity donations, free gas, etc. To answer this question objectively, let s consider the advantage of both cash back credit cards as well as rewards credit cards. An advantage of cash back credit cards over rewards credit cards is its flexibility. Cash- back Credit Cards. With a cash back card, you automatically earn a point or a rebate with any type of purchase you make on your card. Despite the low rebate points of cash back credit cards, it gives the card holder the freedom to use the card in any store he prefers and still get points from all his purchases. Of course, the amount of rebate depends on the credit card issuer which can be from 1% to as much as 2% rebate.

Rewards Credit Cards. Most reward credit cards give as much as 5% from purchases. Rewards credit cards generally give a higher percentage of points for its card holders. However, these rebate points are only limited if you make the purchase from a designated affiliate merchant. If you use your gas rewards credit card to purchase from other establishments, no points will be counted in your account. For example, if you select a gas rewards credit card, you re only entitled to get rebate points each time your refuel your car from affiliate gas stations. If you have a hotel rewards credit card, you ll earn points whenever you use your card from affiliate hotels and establishments.

Additionally, you can only redeem the points you ve earned from the same companies that have partnership with your credit card. Usually, you will not get points if your use the card for general purchases. Weighing Things. If you often shop at a particular store, then why not find a reward credit card that is affiliated with your favorite merchant? Obviously, both types of credit cards can work for your benefit if it matches your lifestyle. Or if you frequently purchase your gas from a particular station, you can also find its affiliated gas reward credit card. If you use your credit card for different purposes or if you usually purchase from different stores then perhaps a cash back credit card will be a better choice for you.

If you frequently travel or rent hotel accommodations, why not find a hotel or airline reward credit card that has partnership with your favorite airline or hotel as well? Even if it gives lower points, you still get points for all your purchases and it also allows you to redeem your points from any store you prefer. Also, bear in mind that most reward credit cards disqualify those who have outstanding balances. Lastly, it is important to remember that both cash back credit cards and rewards credit card may come with higher interest. Thus, whichever type of credit card suits your needs, the advantages you get will still depend on how you use your credit card. On the contrary, if you re in the habit of putting off your monthly payments on your credit card, the cash back points or the credit card rewards you earn may just go to waste.

By paying off your monthly credit card bills on time, you don t have to worry about being charged with a high interest.