According to the Survey of Consumer Payment Choice, Federal Reserve Bank of Boston, January 2010, “There are over 609.8 million credit cards held by U.S. consumers,” and according to the same source the average number of credit cards held by cardholders is a staggering 3.5. Out of the cardholders in the US, how many of you actually use your credit card to reward yourself? According to the same report, 60% of consumers have a rewards credit card, but do you get the most out of it?
Rewards Credit Cards
Rewards credit cards are there to give you something back for spending your hard earned cash, and in some cases you can get some very good deals. The most common type of reward credit card is of course the cash back credit card; their rise into the credit card market has been nothing short of incredible. The credit card provider will reward you with a percentage of cash back based on how much you spent on your card during the month; this can sometimes be as high as 5%. If you fund quite a lot of expenditure on your card from month to month, then 5% may be quite a big chunk of money so finding the right deal for you is important.
Other Reward Cards to Suit You
o Airline / Travel credit cards – This type of reward card is perfect if you consider yourself to be a frequent flyer. Using one of these credit cards you can build up air miles whenever you fly. You can then redeem your miles at a later date and use them on whatever you want, from hotels to flights and other special discounts. If you regularly fly then this is a great option.
o Business credit cards – If you own your own company, then you could be missing out by not having a business credit card. Business credit cards offer a whole range of benefits, including business and supplier discounts. Different providers offer different advantages so make sure you have check out your options before signing on the dotted line.
o Travel insurance credit cards – You can now get credit cards that offer complimentary travel insurance, they are great if you travel regularly and it can save you a lot of money in travel insurance.
o Purchase credit cards – These cards are great if you use your credit card on a regular basis. Using a purchase credit card, you can gain 12 months interest free, meaning you can pay for something and you have a whole year interest free to pay the amount back, without incurrent any other charges.
o Bad-credit credit cards – These credit cards are great if you are struggling with bad credit. They give you a chance to appear reliable to lenders and your credit score will improve.
o Credit builder credit cards – These cards are great if you are just starting out. They offer a really good way of starting to build your personal credit rating.
o Fuel credit cards – If spending your hard earned cash on your daily journey to work bothers you, then why not fund your purchases on a fuel credit card. You can get big savings on fuel and purchases from specific gas stations.
Above are some examples of how you can use a credit card to your advantage, there are so many types of credit card on the market that you should check out the options to find the best credit card to suit you.
This article was written by Andreas Nicolaides, finance and savings writer from UK based MoneySupermarket.