Best Rewards Cards

by Calyn Ehid

Rewards credit cards can be great assets to consumers because they allow cardholders to win something back for using them. They got their name from the way that they operate. These cards reward their users for taking advantage of the credit that they have. The following material explains the various types of reward cards, reward offers, reward programs and the criteria that one must have to obtain such a card. It’s possible for an interested person to obtain card approval today and then have a new card in his position within less than two weeks.

About Reward Cards

Reward credit cards are cards that fall into their category because they issue rewards. Cardholders automatically get the opportunity to earn certain payouts and prizes just for possessing the cards and then using them in their everyday lives. More than one type of reward card exists. Consumers can apply for the ones that suit their specific preferences and needs. Thousands of cards are available to obtain, so consumers can take their time and find the one that fits them the best.

credit card

Who Qualifies for Reward Cards?

The qualification process for reward cards is the same as it is for any other credit card. First and foremost, the applicant must be at least 18 years of age or older to qualify for the card. Credit card ownership requires an adult’s signature because is a contract. Minors cannot enter into legal contracts, and thus, a minor cannot qualify for a credit card.

Credit card companies tend to look at an applicant’s overall financial profile before they decide whether or not to issue that person a credit card. One element that they pay close attention to is the credit score. The credit score is a numerical representation of how the person acts in regards to credit responsibility and applications. Though the number does play a huge factor in a credit card company’s decision, they do consider other factors such as an applicant’s annual earnings, housing situation, banking status and so on.

Sometimes, the credit card company cannot make an instant decision. In that case, it may request some additional information that it can use to make the final decision on the card. Each card company has its own criteria for qualification. Some have lower thresholds than others do for annual payments.

Types of Reward Programs and Cards

Several types of reward programs exist. One popular program is the cash back program. The cash back program is self-explanatory as it allows cardholders to earn cash back on their purchases. The amount of money that cardholders can win varies according to the credit card company and its specific regulations. The percentage varies from as little as 1 percent to as much as 6 percent. Most card companies allow their cardholders to redeem their funds each month, and they can choose from several redemption process selections.

The other main type of reward card is the points card. This card pays points to the cardholders instead of cash. The cardholders accumulate points by using their cards and performing certain actions with their cards. They can then use the points that they accumulate to purchase goods or merchandise depending on the card company’s program.

Miles cards are the third type of reward cards. Airlines usually associate themselves with these cards. They issue points the same as the other points card do. However, the cardholders can only use the points for travel. They can use them to get discounts on airplane tickets, hotels, car rentals and other items that have to do with the act of traveling.

How Reward Cards Work

Most reward cards offer their new cardholders a bonus for choosing them. The bonus may be a certain amount of cash or points. There is usually a stipulation on the bonus that the customer must meet to collect the bonus, however. For example, some cards may offer a $100 bonus, but the customer has to spend $300 in the first 90 days of having the card to make good on the bonus. A travel rewards card may offer 50,000 points and require the consumer to spend $1,000 during the first three months of card ownership. It all depends on what program the card company has in place when the consumer first obtains approval for his or her card.

The next part of card ownership involves the regular use of the card. Cardholders earn points or cash every time they buy something. Cashback cards sometimes split their rewards into categories and award more cash for certain categories. For example, a person may earn 3 percent cash back for buying groceries but only 2 percent for buying fuel. Other cards may offer a solid cash back percentage for all purchases. Consumers can then redeem their cash at least once a month. They may be able to get gift cards or apply the cash back directly to their credit card payment the following month. Rewards cards work the same way except they issue points instead of cash.

Some card companies have a cap on the amount of money that their cardholders can earn each cycle, and others don’t. Consumers can find the best cards for themselves by taking the time to read the program rules, reward process and other information that the credit card company may list on its site.

Interested persons can apply for a reward credit card right now by visiting the website or home of their favorite card company. Most card websites offer online applications, and they use secure technology to protect the identity and personal information of anyone who applies for their card. Applications generally take five minutes or less to complete, and the applications receive an answer about the applications in a matter of 60 seconds. Approved applicants will see their cards in the mail within seven to 10 business days, and they can begin using them immediately. Consumers can use credit cards at thousands of locations across the globe.