Credit Card Shopping: Rewards Cards Can Be Fun and Profitable

Ever since the Discover Credit Card first started offering cash back on purchases credit card issuers have been beating each other’s brains out to get your business. Credit card rewards now come in all shapes and sizes, and some credit cards can get you to those rewards faster than others. Whether it’s air fare, theater tickets or anything else you’re after, there is probably a reward credit card available that can help you get it free.

Here are a few tips to keep in mind when shopping for the right rewards credit card for you:

* Don’t keep a balance on your credit card. If you do, you’ll end up paying more in interest to the credit card company than any reward might be worth. Get in the habit of paying your bill off completely and on time every month - or else shop for a low interest credit card instead of a rewards card.

* Make sure you know the currency. In this case the currency that you’re dealing in is mileage points or points awarded for each dollar of credit card purchases. The number of points required for a reward vary from card to card, so make sure you shop for the card that will get you to the reward that you want the fastest.

* Check the expiration date on those points! Rewards points that never expire are getting more and more popular, but some cards still offer points that expire after a period of time. Depending upon how fast you earn points, it may take you some time to earn points for high-end rewards, so as you shop for a rewards card look at their policy on point expiration. Try to find a card that offers points that never expire.

* Know which purchases give you the biggest reward for the buck. Some purchases will net you more points than others, and some purchases might not net you any points at all. Many airline rewards cards offer point bonuses for purchases of air travel. Some American Express cards offer double points for purchases of gas and groceries. Make sure you understand the credit card agreement and pick one that will maximize your receipt of points given your spending habits.

* Pay household bills with your credit card. This one is huge for me. I pay for gasoline, groceries, electricity, heating oil, cable TV and water all with my credit card. If you get used to paying as many bills as possible with your credit card (and then transferring the money from your checking account to your credit card) bill payment gets easier, the credit card balance won’t get away from you, and you’ll earn points faster than ever.