Use reward programs the right way
Thursday May 22, 2008
Reward programs need to be focused on the things you want if they are to be of any benefit. You will need to spend a great deal using your credit card if reward programs are going to pay off for you beyond what you pay in annual fees, so are there rewards on offer in your reward programs that you would actually like to redeem?
If you are a traveller you would most likely benefit more from reward programs that focus on travel benefits rather than general reward programs. This will usually mean a more restricted range of rewards are available to you, but you will usually be able to convert reward points into frequent flyer points at a more favourable rate. You may also find better accommodation deals with travel specific reward programs, making your holidays much more enjoyable.
If you would prefer cash to luxury goods when you are being rewarded, then reward programs with a cash back function would be ideal for you. This can either be a direct cash back on all purchases as a normal function of the card, or else it may be possible to redeem reward points for cash. In terms of monetary value you can gain from this compared to the value of products redeemed in other reward programs, cash back will provide you with a much lower value in general.
Please visit our comparison page if you would like to browse many good value credit cards that may also include reward programs.
