What’s the Buzz? Rewards Cards that are Worth It.

Posted by Gianna | January 23rd, 2012 | General Information

Within the tight economy, credit card companies are attempting to gain more customers by offering rewards programs – and some of them are pretty good. But before you sign your life away to a card with a high interest rate and rewards that are invaluable to you, make sure you know what you are getting yourself into.

We’ve all seen the commercial – the one with the late-night talk-show host chatting with a little baby in a high-chair about earning more money – then getting cereal thrown in his face (and a fire extinguisher for that matter). He then proceeds to “make it rain” with a handful of cash. Sounds nice doesn’t it?

There are several types of rewards cards – the most common are Cash Back rewards cards and Travel rewards cards. Rewards cards are usually used by people who have no credit card balances because although you get money back, they usually come with a high interest rate. So, if you can pay your balance off monthly – you can get rewards in return and pay zero interest.

Travel Rewards Cards

Travel rewards cards generally offer big returns, but only if you intend to frequently travel and look for upgrades. If this is your type of card you may want to check out the Citi Hilton HHonors Visa Signature Card. As a cardholder you get perks, protection and free stays at Hilton resorts. With a good sign up bonus, users can earn 40,000 Hilton HHonors Bonus Point after spending $1,000 within four months of opening an account.

You can also earn six Hilton HHonors Bonus points per $1 at Hilton Worldwide portfolio hotels. As a cardholder you can earn 3 bonus points for every $1 spent on purchases at supermarkets, drugstores and gas stations. Also earn two bonus points for each $1 spent on other purchases. This card has no annual fee. This card has a great sign-up offer and you can rack up points rapidly, plus you can earn bonus points in non-travel categories and double points on all purchases – which is a total plus!

Another “rewarding” travel card would be the Southwest Airlines Rapid Rewards Plus Credit Card – FREE FLIGHT. It’s all in the name. When you use your card you earn 25,000 bonus points for every purchase you make – double on Southwest purchases, anniversary bonus points, exclusive travel rewards and more. Cardholders can redeem their points toward FREE flights with Wanna Get Away Fares by Southwest Airlines.

The card works on a point system. Earn one point per $1 spent on anything non-Southwest related. There is a promotional period where you can earn points on balance transfers. Plus, you can receive 3,000 Rapid Rewards points upon your one year anniversary with your card – this bonus is good for $50 in Wanna Get Away fares.

Cash back rewards cards are good all the way around. They are a simple choice for many, kicking back up to 5% of certain purchases. A good recommendation would be the Chase Freedom Visa Card.

The Chase Freedom Visa card has zero annual fee, 1% cash back on all purchases, and 5% cash back on seasonal categories that rotate quarterly. These include mostly cash back options at gas stations, retail stores, entertainment merchants, movie theaters and more. Usually, Chase offers a promotion with the card – usually giving between $100-$500 cash back when spending certain amounts within the first few months after signing up. As a Visa cardholder, you’ll get discounts and it is widely spread throughout the U.S.

Another cash back rewards card is the Blue Cash Everyday Card from American Express. The rewards card that allows you to earn cash back on regular purchases and zero annual fee. You can earn 3% cash back at supermarkets, 2% cash back at gas stations and department stores and 1% cash back on everything else. Plus you can get a $100 bonus cash back if you spend $500 within the first 60 days.

The Costco True Earnings American Express Card is a rewards card like no other. It is the only reward card that pays EXTRA bonuses on warehouse store purchases! If you are a Costco member, this is the ideal card for you. Customers with Costco memberships pay no annual fee, and the card pays 3% back on gas purchases of up to $3,000 a year. You can use the card to purchase gas at Costco and get the 3% back on already discounted fuel purchases.

In addition to your purchases at Costco, you get 2% cash back for restaurants and travel – plus 1% cash back for everywhere else. The card issues a cash back reward coupon annually that can be redeemed at any Costco for cash or merchandise.

Rewards made for You

So before you listen to a late-night talk show host – or any other sensationalized advertisement – proclaiming that you are going to make a killing by signing up for a credit card, make sure you do your research. Some of these cards may actually be perfect for you!!

Tags: American Express, Blue Cash Everyday, Chase, Chase Freedom, chase freedom visa, Citi Hilton HHonors Visa Signature Card, Costco, credit cards, Hilton, Hilton HHonors, rewards, rewards cards, Southwest airlines, travel, Visa
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