If you’re not earning rewards every time you make a purchase with your credit card, then you might be missing out. Credit card companies pay hundreds or even thousands of dollars to cardholders with rewards of all shapes and sizes. If you’d like to get in on the action and earn rewards just for using your credit card responsibly, then here’s what you need to know:

How credit card rewards work

Many credit card rewards programs are fairly simple. For every dollar in eligible purchases you make, the credit card company will award you a point. It’s up to the credit card company how many points they would like to award you for each dollar spent, but some will pay somewhere between 1 and 2% per every dollar spent on general purchases. After accumulating enough of these points, the cardholder can redeem them for a variety of different types of rewards.

Keep in mind that some cards may offer more points than others for specific types of purchases, such as gas or restaurants. A few card issuers will even change these categories every three months, offering what’s called revolving rewards categories.

Another easy way to earn credit card points is by simply becoming a new card member. Many major card providers offer special promotions where new applicants can receive thousands of points within their first few months of usage. You can then typically redeem these points for hundreds of dollars in rewards.

Best types of rewards credit cards

With so many great options, it may seem difficult to narrow down the best rewards credit card in Canada. Here are several different types that you may want to check out and consider applying for:

Points cards

Again, many rewards credit cards operate off some type of points system. This allows them to make their own form of virtual currency for earning and redeeming points. Depending on the card issuer’s program, those points can then typically be converted into a statement credit, gift cards, or other prizes.

Cash back credit cards

Cash back credit cards work very similar to points cards, except you’ll be earning cash back with every purchase. This option generally works better for people who aren’t interested in navigating a credit card rewards system and just want plain money that they can use right away.

Travel rewards credit cards

When a credit card company partners with an airline or hotel, it can mean big things for the cardholder. Every dollar you spend can turn into points that you can use with the airline or hotel affiliated with that credit card. This can help you to score free flights and hotel stays anywhere in the world for you and your family.

Additionally, these cards can come with other unique perks. For example, many airline cards allow free checked bags or access to exclusive airline lounges. Hotel cards often give members free upgrades and check-out privileges that non-cardholders might not receive.

How to decide on the right rewards card for you

Before applying for a credit card, it helps to be strategic in your decision. You should consider:

  • Which cards you’ll be eligible for (based on your credit score)
  • How much you’ll use the rewards or perks that come with the credit card
  • If there are any annual fees and how this may detract from the overall value of the card

For example, if you love to travel and there’s an airline credit card offering a large sign-up bonus and tons of miles for every dollar you spend, then this might be the best rewards credit card for your spending.

The bottom line

There are many different types of reward credit cards to choose from. Each has a unique rewards system that can be used to redeem cash, gift cards, a statement credit, or even free travel. Consider your needs and eligibility, and choose the card that best aligns with your spending habits.

See Campaign: https://www.iquanti.com

Contact Information:

Name: Carolina d’Arbelles-Valle
Email: Carolina.darbellesv@iquanti.com
Job Title: Senior Digital PR Specialist
(201) 633-2125

ReleaseLive, IPS, Reportedtimes, Google News, PR-Wirein, CE, Go Media, iCN Internal Distribution, Extended Distribution, English