#rewards credit cards

#Chase Sapphire Preferred Card

By:John Kiernan, Personal Finance Editor

Rewards credit cards generally have three main characteristics: their rewards currency, their targeted consumer demographic, and whether or not they are affiliated with any particular company or organization.

There are three primary rewards currencies: points, miles and cash back. In addition, rewards credit cards are also targeted to three main demographics: students, small business owners and general consumers. Credit cards that are affiliated with certain companies, organizations or causes are known as affinity cards. Affinity cards include both store cards, which provide rewards strictly on purchases you make at affiliated stores, and co-branded Visa or MasterCard cards that can be used anywhere but provide added rewards for purchases made through the respective company or organization tied to the card. In short, people get them because they have an affinity for the store or organization the card is tied to and would like their credit card rewards to reflect and fuel this interest.

By:Odysseas Papadimitriou, CardHub CEO

Each credit card company typically has its own rewards program, and while some are known for having the best customer service or the best cash back rewards, for example, your credit card rewards comparison should really be focused around finding the single best rewards credit card for your lifestyle.

“When every business is offering the same [type of] loyalty program, it will be hard for customers to differentiate one from another,” says Dr. Christina Chi . an assistant professor in the School of Hospitality Business Management at Washington State University . “What makes a business stand out is, of course, first and foremost, the quality of the service/product. If two businesses are offering similar quality product/service at a similar price, then their loyalty program may help make the difference. Whoever's loyalty program offers the better deal and is easier to redeem the loyalty points will win out.”

The first step in choosing a rewards program is deciding whether travel rewards are suitable, so ask yourself: Do I compile 30,000 airline miles or 20 nights in a hotel annually? If your answer is “yes,” get a generic travel rewards card or the card tied to your favorite hotel/airline (if most of your travel is with that company).

If you answered “no,” we recommend simply finding the cash back credit card offering the most lucrative rewards on your biggest expenses. Credit card companies can easily devalue points/miles by changing the number that must be redeemed for certain rewards. This is not possible with cash.

In addition, cash back rewards offer a lot of redemption versatility in that you can redeem your earnings for any type of expense via statement credits – unlike many points and miles-based credit cards. Interestingly, this “perk” benefits card issuers as well. “If there are a lot of options for a consumer to redeem accrued points (or whatever), consumers will have a more favorable image of and feeling for the company,” says Dr. Patricia Huddleston . a professor of retailing in the Department of Advertising, Public Relations and Retailing at Michigan State University.

By:Odysseas Papadimitriou, CardHub CEO

Trying to compare credit card rewards can be confusing, especially given the fact that some of the most important information about a card might be buried within the application’s fine print. Below you will find some of the most important terms to look for when examining a credit card offer

1. "Expiration " – It’s extremely important to determine whether your rewards will expire, especially if you are someone who likes to compile a lot of rewards and redeem them all at once.
2. "Up to " – Some rewards credit cards only allow you to earn points, miles or cash in various spending categories up to a certain amount spent. The presence of any such quotas or limits impacts the ultimate benefit a card will provide.
3. "Rotating " – Credit cards often provide higher earning rates on specific spending categories that change, usually on a quarterly basis. You typically need to sign up for these heightened rewards, however.
4. "Tiers " – Some credit cards use a tiered rewards structure where the number of points/miles or percentage of cash back you get for every purchase increases based on your annual spending.