Credit card rewards programs offer a way to turn everyday spending into points, cash back or travel benefits. However, if you’re not careful, rewards can easily turn into a financial drain. This article delves into the mechanics of credit card rewards and what you should know before you sign up.At this : Creditrewardperks.com
What are some perks or rewards of having a credit card?
Rewards categories
The type of purchases that earn you rewards can be important, as can whether or not a particular credit card charges an annual fee. Those factors can help you decide between cards that are similar on the “earn” side, such as those that pay bonus cash back in specific categories like groceries, gas and transit, or on the “burn” side, such as those that allow you to redeem points for airline tickets or hotel stays.
Sign-up bonuses
Many cards offer a welcome bonus in the form of hundreds or thousands of extra points or dollars after you spend a certain amount within the first few months of opening your account. If the card has an annual fee, a big bonus can help offset it.
Point redemption
Most cards let you use your redeemed points or miles for specific items or services, including gift cards, travel reservations and car rentals. In some cases, you can also apply your redeemed points to reduce the amount of money you owe on your credit card balance (though not every card issuer offers this). One common method of redemption is via statement credits, where the value of redeemed points or miles is automatically applied to your existing account balance.