Understanding Credit Card Rewards Programs What You Need to Know About Earning Credit Card Rewards
Credit card rewards programs are a great way to earn rewards and cash back on your purchases. However, not all rewards programs are created equal. In this article, we will discuss the different types of credit card rewards programs, how to earn rewards, and what to watch out for.
Types of Credit Card Rewards Programs
There are three main types of credit card rewards programs: cash back, miles, and points.
Cash back rewards programs give you a percentage of your purchase back as cash. For example, if you spend $100 on your credit card and earn $10 in cash back, you’ll receive $10 in cash.
Miles rewards programs give you a number of miles for every dollar you spend. For example, if you spend $100 on your credit card and earn 10,000 miles, you’ll receive a $100 statement credit and 10,000 miles in your account.
Points rewards programs give you a number of points for every dollar you spend. For example, if you spend $100 on your credit card and earn 10,000 points, you’ll receive a $100 statement credit and 10,000 points in your account.
How to Earn Rewards
To earn rewards with a credit card rewards program, you first have to enroll in the program. Once you’ve enrolled, you have to make qualifying purchases. Qualifying purchases include items that are typically used for everyday expenses, like groceries, gas, and utilities.
Once you’ve made a qualifying purchase, the credit card rewards program will track your spending and reward you for your purchases. You can also earn rewards by referring your friends and family to the credit card rewards program.
What to Watch Out For
There are a few things to watch out for when it comes to credit card rewards programs. First, make sure you are aware of the terms and conditions of the program. For example, some programs have a spending limit or a minimum amount you have to spend to earn rewards.
Second, make sure you are aware of the rewards you are eligible to earn. Some programs only offer a limited number of rewards options, like cash back, miles, or points.
Finally, make sure you are aware of the fees associated with the credit card rewards program. Some programs have high annual fees, which can reduce the amount of rewards you earn.
