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Which Credit Card Rewards Program Provides the Most Benefits?

Hand holding and typing on a credit card entry machine.

Many credit cards come with some sort of rewards program these days to show their appreciation for your business, as well as to keep you happy with their services. And while it can seem like they are all the same, some pretty significant differences can make an impact on your budget. When you want to make the most of your purchases, it's essential that you find a credit card rewards program that has the most benefits so that you can actually see the savings in your finances. Here are a few aspects to consider when finding the right rewards program for you.

What percentage do you get back on purchases?

Pay attention to the percentage you get back on your purchases because this can make a big difference in the savings you can achieve. For example, say you use your card for $1000 worth of purchases a month, and you get 1% cash back. That means you'll get $10 back a month, and over the course of a year, that's $120. Sounds great! Until you realize that a card that offers 1.5% cash back will give you $15 a month, and that means you'll get $180 back, $60 more a year. Don't just hear the words cash back -- find out how much cash back.

You should also pay attention to which purchases provide the benefits. Some cards will limit you to gas or restaurants, while others will give you the rewards regardless of what you buy. 

Do the points ever expire?

It's frustrating when you work hard to save up points for that big purchase, only to realize that they expired a few days prior. Have the credit card company explain the fine print so that you understand when the points expire (if they do) and if you have other options.

Do you pay an annual fee?

If you get a good percentage of cash back but pay an annual fee, you should crunch the numbers to see if it's really worth it. You might be surprised to find that you’re essential using all of your rewards just to have the credit card.

Do you get cash back or gift cards?

Not all cash back programs work the same, and in some cases, you'll be limited to a points system by receiving gift cards versus getting a credit on your account. These gift cards can be great, but they may restrict you to where and what you purchase, so be mindful of that. Also, they can take much longer to reach your wallet than a program that gives you rewards quickly.

Do you understand the terms?

The best credit card rewards programs will cut through the gimmicks and provide you with straightforward terms that are understandable. And if you have any questions, the customer support will thoroughly answer your questions with clarity.

Reach out to the professional team at FedFinancial about our credit card rewards program so that you can learn more and compare our cash back benefits to other cards. We're here to answer your questions so that you can make an informed decision that's right for you. Just call (301) 881-5626 today to learn more!

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