Want to save on travel, pick out free merchandise, or receive checks in the mail? These are just some of the bonuses companies offer through rewards credit cards. With a little planning, you can make the most of your rewards credit cards.
How Rewards Credit Cards Work
Companies offer a vast array of reward plans. Yet the basic principle of all rewards credit cards is the same: you receive rewards for using the cards. For cash back cards, companies offer a certain percentage, such as 1%, return on all of your purchases. So if you spend $2,500 with your credit card, you can expect a check for $25. Some companies include a higher percentage, such as 5%, in cash back for shopping at grocery stores and gas stations. This way you earn more cash for regular household purchases. Think about it: the $2,500 you spend could bring in a $125 check just for shopping!
Cash back cards are not the only type of rewards credit cards available; there are plenty of others to choose from. Some rewards credit cards offer a point system. You might receive one point for each dollar spent. You can then use your points to buy certain items. Others include rebates for gas purchases,...
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