Everywhere you look you see credit card companies offering credit card deals, each one appearing better than the one before. Some of the most popular ones are the cash back credit cards and 0% APR credit cards. If you’ve been wondering if you should accept some of these offers of loyalty rewards credit cards, the answer is yes. Most people want to get these kinds of credit cards. This is the day and age of plastic. Most people have at least one credit card; others have many credit cards and are used almost daily.
If you’re going to be using a Credit Card, you may as well use one that gives you rewards each time you use it. The age-old question has always been which credit card you should choose. Although in places like the UK, it may seem as though there are several types or rewards or cash back credit cards, they actually fall into two categories, both based on loyalty: product-based loyalty reward credit cards and cash back credit cards. Before you can answer that, let’s take a look at each of these cards mean and have to offer:
Cash Back credit cards – are very popular everywhere. Although these cards sound wonderful, they may not suit every person. You’re probably wondering how the idea of getting cash back for using your credit card would not be a great idea for everyone. The reason is simple. Cash back loyalty credit cards are most beneficial for those that pay off their balance each statement period. Some credit card users use their credit cards for convenience and make the minimum monthly payment or maybe a little more. Over 50% of credit card users do not pay off their balances each month. If you fall in this category, you may find that the interest and fees you are being charged are a lot higher than the cash back you’re receiving. Unless you’re using 0% APR credit cards, you’re not really coming out ahead.
Product-Based Loyalty Credit Cards– These types of credit card deals are probably the best cards you could get, especially if you shop at a certain store that offers this card. If you’re getting the product or shopping at a certain store anyways, why not get the loyalty benefits?
0% APR credit cards – These are always the best credit card loyalty program you can be offered. Regardless of what type of rewards or points you’re getting, if you’re not paying interest, it can’t get much better than that. So when you’re comparing credit card deals, remember the lowest interest rate is always the best.