Does your credit card company offer a rewards program? If not, you might want to consider a different credit card if you really want to get something more for your money. Many companies offer some sort of rewards program, and customers that take advantage of them report feeling more satisfied with their creditor.
American Express can be a good place to start. Their rewards programs are continuously ranked at the top of the list when compared to others, and there are different levels to choose from so that your available rewards are customized to you.
Rewards With Annual Fees
Some cards require an annual fee, anywhere from $95 for the Green Card, $125 for the Gold Card, and $450 for the Platinum Card. Depending on your income and your spending habits, these may be well worth it for you in the rewards. Many of their cards offer travel rewards, and the restrictions seem to be getting looser with most programs: no blackout dates, no expiration on miles or points, no booking fees, choose your airline and flight class, etc. If you rack up enough points (usually 1 point for every $1 spent, not counting introductory offers and bonuses), you could almost cover an entire vacation with your points. Use them on your hotel, car rental, restaurants, etc. The catch with these cards is that you must pay your balance in full every month.
Rewards Without Annual Fees
If you’re not a big spender and/or refuse to pay an annual fee on a credit card, or simply could never afford to pay your entire bill every month, you still have options. Cards like Blue and Blue Cash don’t have an annual fee, and you start off with 0% APR for your first year. With Blue, you earn points for spending and can redeem them for travel, entertainment, and gift cards to stores like amazon.com, Home Depot, and GAP. With Blue Cash, you get a $25 American Express gift card for $2500 you spend on your credit card.
Be sure to choose the one that fits your lifestyle. If you’re not a traveler, don’t choose the card whose rewards are mostly travel-related. If you are a traveler, don’t pick the card that offers mainly entertainment rewards. Whichever one you go with, no matter the company, read the fine print, watch for expiration dates or changes in terms, and squeeze every last drop you can out of the program. Even if you’re not paying an annual fee, you’re still handing your money over to the credit card company. Make sure they’re giving you something back.
3:46 pm on July 20th, 2009 1
I recently signed up with American Express as my online broker, Fidelity, offers a rewards cards that gives you 2% cash back on all purchases which gets deposited directly into my Roth IRA account. This will help supplement my current distributions into my Roth IRA which should really add up in the long run.