There are many, many different rewards programs available from different card companies. In fact, each individual card provider may have a series of different rewards cards specifically designed for different segments of their customer base.

It is very common for a rewards program to provide you with cash back or rewards points. For example:

  • Some credit cards will reward you for every single purchase you make. It is common to get 1 percent cash back on any purchase.
  • Some cards will provide you with bonus cash back on purchases in certain categories. For example, the Discover More card and the Chase Freedom card provide 5 percent cash back on a rotating series of categories, so at one point in the year you may get 5 percent back on travel and at another point in the year, you may get 5 percent back on groceries.
  • Some cards provide airline miles instead of cash back. These cards typically provide you with extra miles or more rewards when you purchase travel related items or airline tickets.
  • Other cards offer merchandise instead of cash back. The merchandise can be everything from airline miles to cruises to consumer electronics to gift cards.


Choosing a Program

Because there are so many different rewards programs, it is important to think carefully about choosing a program. First, consider what you spend the most on.

  • Do you tend to spend a lot of money eating out? If so, a uPromise card that gives you bonus rewards for purchases from many different restaurants may be right for you.
  • If you spend a lot on gas, a gas rewards card, such as the Discover Open Road Card, or a card from a specific gas brand may be your best bet.
  • For general purpose spenders, a card such as the one offered by Fidelity that gives you 2 percent back into a qualified Fidelity account may be a good option.


Fee or No Fee?

It may seem like a no brainer that you should get a card without an annual fee. However, cards with annual fees, especially certain American Express cards, tend to give much more generous rewards and benefits. You need to do the math to find out if the extra rewards you will get are worth the fee.

Rewards points are a great thing and can bring you some extra cash. However, you need to remember that the reason credit card companies can be generous with rewards is because they make a hefty profit off of consumers. Who do they profit off of most? Those who pay late or who carry a balance for month after month.You want to be one of the consumers who gets the rewards, not one of the consumers who is paying for the rewards earned by more savvy shoppers. So make sure you make your payments on time every single month.

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