Monday, 30 September 2013

Choose Credit Card Rewards That Actually Save Money

When it comes to instant gratification, credit cards are the financial product with the most flash. Rather than earn meagre return on stowed away savings, credit cards actually reward you: for being loyal, for making everyday purchases, for being a traveler. But at the end of the day, is paying an annual fee worth cashing in your points on a free toaster? Are you paying sky high interest each month for travel discounts, but fly barely once a year?

Credit card rewards can be downright confusing. A recent poll conducted by RBC found that 39 per cent of customers were puzzled by their points program, while another 38 per cent were frustrated by constantly changing rules.

How To Pick The Best Rewards Credit Card

Reward Your Lifestyle: The first step to picking your perfect plastic is to examine your spending habits. What do you spend most on daily? Are you shelling out on your long commute to work? Do you have a family of four to feed? Some rewards programs are geared to such everyday expenses like gas and groceries, and can save you a bundle in the long run.

Top Credit Card Pick:  While taking the general approach is always safe, the same can be said if you’re an avid hobbyist. For example, gamers may be delighted by the extra spending power granted to them by the Sony Card MasterCard® credit card, which awards 20,000 Sony points (worth $20) upon first purchase, and earns points on every purchase, (double in the Sony Store). It’s also easy on the pocket with no annual fee, super low interest rate of 1.99 per cent for the first 10 months, and 1.99 per cent balance transfer rate.

Pick The Right Reward Type: Not all rewards are created equal. Some offer points that can only be redeemed from a limited selection online or dedicated gift centre. Others may be cashed only with specific retailers, or put toward a reward type, like travel purchases. The most flexible reward cards, though, will pay you back in cold, hard cash - to be used for whatever you like!

Top card pick: The MBNA Smart Cash MasterCard® Credit Card is a frontrunner when it comes to cash back perks, offering up to five per cent on all eligible gas and grocery buys for the first six months (it goes to two per cent after that). Not only that, but they actually cut you a cheque when your earnings hit $50!

Redeem With No Restrictions: Travel rewards cards in particular have a bit of a bad rap when it comes to cashing in. Everyone’s got a nightmare story about encountering seat blackouts, seasonal trip restrictions and terrible customer service. However, this standard is changing; the best travel rewards credit cards will allow you to buy from any airline at any time - they operate by rewarding travel purchases made on the card itself.
Top Card Pick: Capital One Aspire Travel™ World MasterCard® has a No Hassle Rewards system -  consumers simply book their airfare, hotel and other travel expenses with their card, and then pay for them with the points earned. New card sign ups will also earn 35,000 miles right away (earned with the first purchase made on the card), and will receive an additional 10,000 points each year – not too shabby for just being a cardholder! Click here for more

1 comment:

  1. Great post and simply superb in nature. really good to read this kind of post. thanks for sharing..