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Making the Most of Credit Card Rewards

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Some people believe that you should avoid getting a credit card as they generate debt. However, without one you will be missing out as they offer protection when buying items online. They are also one of the best ways of spending when you jet off to an international destination. Additionally, when you rent a car or a truck, the rental firm sometimes insists on taking your credit card details as security in case you damage the vehicle. There are lots of other benefits, including the flexibility you get from having one, and other things like air miles and reward points.

Credit Card Rewards

Card companies want you to spend credit, and offer bonuses that reward you for doing so. Air Miles is a reward that major card firms offer, and cashback is another thing regularly offered to cardholders. However, you shouldn't take out a card because of the rewards. They should only be used to decide between two or more very similar cards. You need to take into account information like the annual percentage rate (APR) and any regular fees before considering bonuses.

Credit Cards With Air Miles

Getting something for nothing is great so long as you aren't spending on the card to get the bonus. Air Miles are a great reward and credit card firms know just how popular they are. You can get Air Miles with most major credit card firms. Some offer massive bonuses for spending a set amount within a short period of opening the account. Others simply give miles for every transaction. The card companies that offer the best deals tend to be attached to individual airlines. If you're thinking of taking out one of these cards, find out if your local airport is dominated by a single airline, like Atlanta's is by Delta. If so, you'll need to take out their card to make the most of this type of reward.

Auto Reward Cards

Car makers are another group of companies offering credit cards with tempting rewards. As long as you stick with their brand while you have the card, you'll save cash through rebates for money spent at the dealerships on parts, services and even new cars. Most offer a points system that rewards you for spending on the card no matter where you use it but gives you more points when you buy their products or spend money at one of their dealerships.

Hotel Rewards

With a hotel credit card you could end up enjoying a room upgrade, a free night at a hotel or other loyalty perks. Hotel cards are either co-branded or for general travel so if you stay in the same place or you always use the same hotel chain a co-branded card will give you the most benefits. You'll join their membership program and enjoy additional perks. If you want flexibility, you'll get more out of a general travel card. As with the other cards featured here, a hotel reward card gives you points with each purchase which can be redeemed for rewards. You get a flat rate with general cards while co-branded cards offer more points when they're used for goods and services at a hotel in the chain.

Store Cards

Store cards are worth taking out if you're loyal to a certain chain of stores as they tend to offer cashback on in-store purchases. You have to watch the APR with these cards though because they're often higher than general credit cards. There are two types of store cards: those that allow you to shop everywhere but give you extra rewards in a chain of stores and closed-loop cards that can only be used in one chain. A closed-loop card can give you as much as five percent off your shopping but they're not as flexible as other store cards.

Comparing Credit Cards

You'll need to do some research to figure out which card is right for you. You'll find that comparison sites offer the only comprehensive way of doing this. Using a comparison site will make sure that you don't miss important information about a card such as the APR, the reward program and any fees. You might also find a commentary about each card on the site which will also give you some clarity when you're deciding which card to apply for.