Researching the Terms of the Reward Credit Card Program

Reward credit cards offer you something extra in return for your loyalty in purchasing the sponsor’s product or for just using the card to make purchases. Reward credit card offers also give the different credit card companies a tool to make their brand of card more attractive to win your business. There is a multitude of variations among the reward programs and you will have to do a comprehensive comparison before choosing your credit card. Here are some things to consider:

Determine how easy it is to redeem your reward points. Can you redeem reward points via a website or do you need to call customer service? Can you view a catalog of redemption merchandise online or do you need to request one by mail? The reward credit card should at least disclose their redemption terms up front so that you can actually cash in someday.

What transactions qualify for award points? Some reward credit cards do not allow points to be earned on transactions like cash advances, balance transfers, and convenience checks. It makes sense too because these types of transactions are usually valued higher and could be used to unfairly inflate the points earned.

Is enrollment in the credit card awards program automatic or do you need to do something? Don’t mistakenly assume that just because you were issued a reward credit card that you will automatically start getting points. The credit card company in many cases will require you to activate the rewards portion of the account in a separate step.

What is offered for different point levels? Resign yourself to the fact that it will take a lot of spending to get at the higher point levels for the premium rewards. For example, to get a free plane ticket from an airline reward credit card takes numerous trips and miles—more than most travelers will ever take even in their lifetime. So when comparing cards, see what is offered as rewards at the lower point levels. Some have nice items at even the lower point accumulations.

What is the lag time between purchase and award of points? Some plans make you wait periods of up to 60 days between the purchase and award dates. When waiting periods are long, you have a tendency to get discouraged and become unconcerned with the reward credit card program. Or, you just forget it even is there.

Realize that rewards are for usage. In other words, if you are going for a lower interest balance transfer card for the sole purpose of reducing your debt, then the fact that a card offers rewards is irrelevant. If you are truly trying to reduce debt then you are also curbing credit use. Reward credit cards give the points for high use—simple as that.

Do more research on reward credit cards. Visit US-CreditCards.com and review the different types of cards available.