Racking Up Credit Rewards
I. Introduction to Rewards Cards

We all know how important it is to take care of your financial health. Many of us work extremely hard to keep our credit in good standing and avoid pitfalls that can easily land us in debt. That hard work does not go unnoticed. Most credit card companies offer incentive programs that reward good financial behavior through various rewards cards and programs.

If you are an adult with good to excellent credit, there are a multitude of rewards cards available for you. However, it is important to know what you spend the most money on so you can choose a card that will reward you for making those purchases.

With so many options and offers, the task of choosing the right rewards card can be incredibly overwhelming. Understanding the different types of rewards cards and the benefits that each provides will help you choose the right card that will not only meet your needs, but also earn the most rewards.

In this eBook you will find everything you need to help you understand how rewards programs work, how to choose the right rewards program, and how to get the most out of the benefits offered.

What is a Rewards Card?

A rewards card offers rewards in exchange for using the credit card. These rewards come in the form of either cash back, points that can be redeemed for airline or travel miles, or rewards that can be redeemed for other goods and services. Some cards offer one specific kind of reward, while others offer a variety of rewards throughout the year.

Cash Back or Fixed Value Cards

Fixed value or cash back credit cards offer consumers money back for making purchases with the credit card. Traditionally these cards will either give a percentage of the amount spent back to the cardholder or will award one point (some cards offer 2 points) for each dollar spent. If the card offers points, they can be converted into cash or discounts. Meaning that if your card offers one point per dollar spent, and you spend $100, you will receive 100 points. If each point is worth one cent, that converts to a redeemable value of $1. These points can then be used toward free flights, hotel rooms, rental cars, redeemed as a statement credit, or redeemed for other goods and services.