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A reward credit card is a credit card that entices you to use the card more often by offering you incentives. The more you use the card, the more rewards you'll receive.
Is Your Store Listed
Reward credit cards are incentives for consumers to spend. Some cards will reward you for purchases at some stores and not others. Make sure the stores from which you purchase are on the list.
Cash Back
Reward credit cards may offer cash back. The typical point on a card is one cent. Know how many points you need to receive a reward.
Miles
Reward credit cards can offer travel miles, but you must have so many points to claim them. Make sure the airlines you frequent are listed for rewards.
Read Before Signing
Read the terms of the contract before signing. Reward credit card contracts often have hidden fees.
Carrying Debt
Think twice before signing up for a reward card, if you are a part of the 46 percent of Americans who carry credit card debt. People who hold reward credit cards are likely to spend twice as much.
Source:
DiscoverCard.com: How Do Cash Back Rewards Credit Cards Work?
GoodFinancialCents.com: The New Reward Credit Cards
ABCNews.com: The Truth About Credit Card Reward Programs
More Information:
CreditCards.com: Reward Credit Cards
PlasticRewards.com: Compare Cash Back Credit Cards and Credit Card Offers
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