To get the best out of credit cards, you need to learn how to pick a rewards card. That’s where your card gets more valuable.

Many people are afraid of using credit cards. They think a credit card will make them spend more money or fall into debt. But you can take advantage of your credit card and enjoy many benefits. It can be much better than a simple debit card that gives you nothing. 

But you need to pick the right card. Or it will be for no use. Do you know which rewards card is the best for you? The first step is to learn more about them. This article will cover all the rewards you can usually find on a credit card, how they work, and how to pick the right one for your lifestyle. So, keep reading to get this valuable information.

So, let’s see how it works and how valuable it can really be.

A reward is something you get as a gift for doing something. So, in order to receive it, you have to make a purchase. Usually, it will be a fraction of your purchase value.

Some cards will give you rewards for every purchase, while some don’t. Also, some cards have special conditions that provide you extra compensation for selected purchases.

These are called bonus rewards and are directed towards a selected category. For example, some credit cards give bonus rewards when you shop at grocery stores or restaurants. Others may give you a bonus when you pay for streaming services. And so on.

There are three major types of rewards that you’ll find on credit cards. Let’s learn about each of them and this will help you to pick a rewards card:

However, some credit cards are innovating their rewards. There are already cards that reward cryptocurrencies. Others are even offsetting carbon footprints by planting a tree for every purchase you make. With the increasingly competitive market, anything goes to stand out and get the users’ attention.

So, wow to pick your rewards card? Which is the best? This answer is very personal, and each person will have their own preferences. But we’ve made a list with tips that will help you analyze your options to choose the most suitable card for you.

Your card has to match your lifestyle and not the other way around. So, if you do not travel very frequently and stay most of the year in your own city, a travel credit card might not be the best option for you. Probably a points or cash back card will be more valuable.

Or maybe you want to get into the crypto market and could use some bitcoin or other cryptocurrency reward as an incentive to start. If you care about the environment, a tree for every purchase can make you happier than points or cashback. Better or worst will depend on your preferences.

While some rewards programs are pretty straightforward, others look like a puzzle. Do you have time and mental space to think about spending limits or selecting purchases to optime your earnings? Some bonus categories are not worth how much work they give you to get them.

A flat rate will give you peace of mind, and even if it doesn’t seem like much, a 1% or 2% cash back for every purchase can add pretty well by the end of the year. However, if you like collecting as many rewards as possible, you can get a lot of them with bonus categories. 

Preferably, your rewards should at least cover the fees. But ideally, the earning potential should outweigh what you are spending on the card.

The best cards will give you double or more. Another great option is to target zero-fee cards. This way, every penny you earn in rewards will fall as a profit in your pocket.

But remember that rewards are not the only thing to look for on a credit card. Some cards offer perks and benefits more valuable than rewards.

Some cards will give you a sign-up bonus when you get your credit card, and some are pretty valuable. There are sign-up bonuses that are worth alone more than what you’re paying for the annual fee. Just check for the eligibility requirement. Usually, you have to spend a certain amount on a specific period before you get them. 

If you’re stuck with two or more rewards cards to choose from, check if they offer any other benefits beyond the rewards. It is good to get credits, preferential tickets, cell phone insurance, fraud protection, etc. There are many things a credit card can offer. And you deserve the best, always.

If you follow these tips, you will get the best rewards credit card. And if this card is a travel card issued by Chase, you can learn more about its rewards program in the following content.