This is a moderated blog. The Biltmore Group has the sole discretion to edit or remove any message posted. For more information, contact The Biltmore Group.
This entry was posted on 6/3/2008 11:23 AM and is filed under Credit Card.
NEW YORK, June 2, 2008 /PRNewswire-FirstCall/ — Bankrate, Inc.released today its first annual analysis of credit card rewards programs. The
company analyzed data from 30 leading cards provided by nine of the top
issuers to determine the values of each card's cash-back rewards
offerings. The study was designed by Bankrate to help consumers decide
which card is right for them.
Bankrate.com offers the following insights regarding reward program product features:
Consumers with higher spending habits, typically around $1000 or more per month, should seek out tiered rewards cards that reward larger amounts with higher percentages of cash back.
Consumers who spend less each month should utilize flat percentage reward cards to get the biggest yield for what they spend.
Avoid cards that provide more cash back for milestones such as maintaining a revolving balance, transferring a balance from another card, or cash advances. Often the interest rates on these transactions will outweigh the reward benefits.
When picking a card, consider where you shop as many cards disallow purchases from warehouse stores as counting towards your cash back rewards. If you're a frequent wholesale shopper, however, you can look into a card such as the TrueEarnings card from Costco and American Express. Understanding your shopping habits will help you find the best deal.
Look for cards with no cap on how much cash you can earn back. Many companies will cap the amount you earn back at an amount between $300 and $600 annually, but typically $500 is a good cap for how much you can earn.
Watch out for fees. Some cards in Bankrate's survey charge an annual fee to participate in the cash-back rewards program. Fees can minimize or negate the cash-back rewards you can accumulate.
Stay within your means. Spending extra money outside of your budget to accrue more rewards points is particularly a problem with tiered rewards cards.
Consider which stores you shop at frequently as well as fees and APR to determine which card is best for you.
