Credit Cards with Perks – Choosing the Right One

Check your mailbox on any given morning (or your inbox) and you are probably not surprised to find a few credit card offers inside.  If you are in the market for one, fierce competition among banks and card issuers means one thing. You do not have to settle for a card that doesn’t offer you “perks”.  Credit card perks can range from traditional rewards like free air travel to cash back on purchases that can amount to a significant amount of money over time.  Let’s look at how to choose the right card that has the perks that will benefit you the most as a cardholder.

Why Credit Card Companies Offer Perks

Perks or rewards that are offered by a credit card company are offered for one reason: to build customer loyalty.  Card issuers know that consumers have an abundance of choices when it comes to choosing a company – and they also know that cardholders are a fickle bunch.  By offering perks and rewards for staying with a company, the credit card company is rewarded with your business. It’s that simple.  So even though it appears on the surface that the company is doing you a great favor in offering these loyalty rewards, the truth of the matter is that they are gaining a bigger benefit than you are!  Keep that in mind when you are shopping for your next card that features these rewards:

  • Airline miles.  Many companies offer airline miles.  Airline miles as perks build up fast; by making purchases with this type of card, you receive “miles” that are redeemable for free or discount airfare.  This card is great for the avid business traveler.
  • Free credit reports.  Some companies give you free access to your credit report each month from the major credit bureaus.  This is a good perk for those cardholders who are monitoring their credit closely.
  • Discounts. Credit companies sometimes partner with other major companies to provide discounts on other expenses that you have, like phone service, or purchases that you make, like tickets to events or theme parks.
  • Benefits for your causes.  If you are not interested in rewards for yourself, why not choose a credit card that has perks for your favorite causes and charities.  From charities that benefit children, the homeless, and animals to those that help to promote a cleaner planet, there are lot of options when it comes to spreading the love by doing what you likely already do anyway – shopping!
  • Cash back and cash rewards. Nothing says “we appreciate your business” like cold hard cash.  If other rewards do not appeal to you, perhaps a little extra jingle in your pocket will.  Most cash back offers are around 1-2% of your total purchases – which doesn’t sound like much until you think about all those purchases you make each year – they really add up!  Some card companies will give you twice the cash back if you opt for a gift card with a partner store – which can quickly turn a $50 cash back reward into a $100 gift card for your favorite retailer.

No matter which type of credit card perks you choose, be sure to check out the fine print. This is found in what is known as the Schumer Box on the application’s terms and conditions section – which gives you details about the card offer you are reviewing, including its annual fee, grace period, APR, and how you can accumulate and use the rewards that are being offered.

Leave a comment: