Information Center – News and Articles about Credit Cards
Ezpreapproval.com presents the Information Center — a new and improved credit card news service. We will inform you with up-to-date articles on credit cards for good credit, bad or no-credit history. Get information on best credit card deals for student credit cards, cash back credit cards and business credit cards. Learn about the top deals on credit cards with the lowest APR deals and other hot issues.
An Introduction to Rewards Credit Card Applications
You have always been smart when it comes to saving and spending money, always meeting your financial obligations on time. You have also had a credit report that anybody would want to have, in that you have never carried a lot of debt beyond a possible mortgage. For all of this effort, you get lots of credit card applications in the mail screaming that you already have the company’s seal of approval before you ever open the envelope.
If there is a constant, it is the fact that you will receive many credit card offers if you happen to have excellent credit and an outstanding credit history. Even though it may be your first inclination to throw away credit card applications or delete online credit card applications you receive, you may want to see what is available to you as there can be many benefits you can take advantage of. The key is to discover what benefits will be right for you.
What Kinds Of Cards Do I Have To Choose From?
When it boils down to what credit card companies are willing to offer a consumer that has good credit, you can find that there are various incentive programs in many different forms. They range from cash back credit cards to frequent flier credit cards offering airmiles and discounts on merchandise.
Credit card companies are changing the old perks they used to offer and now they have perks that people want to get. It is the case that most of the perks that are available nowadays come in two forms: programs for both cash back credit cards and credit card rewards.
Money, For Me? For a lot of consumers out there cash back credit card programs can look very good. There are two kinds of cash back credit cards:
1. Flat percentage rate cards – These are cards that offer a flat rebate percentage, typically 1%, based on the amount you spend annually. This is usually capped at $50,000-$60,000 in spending on that credit card each year.
These types of cash back credit cards are not difficult to understand; they offer a flat percentage cash rebate on the money that is charged on the card. Usually the rebate that the credit card gives is 1%, but there are some cash back credit cards that will offer a rebate of as much as 5%-10%. This type of cash back program that has the higher percentage rate requires targeted redemption at specific merchants and/or based on meeting certain set requirements.
On a cash back credit card with a 1% rebate, for example, you would receive $300 if you spend $30,000 on the card over the course of the whole year. You should know that many cards have a cap on the amount of cash back that you can get. This is typically in the range of $600. It is also the case that some cash back credit cards have a requirement that you carry a month-to-month balance for you to be eligible for the cash back rebate.
By having a carry over of your monthly balance, it will take away from the rewards of cash back considering the rates will be higher for these types of credit cards. The average annual percentage rate (APR) for cash back credit cards tends to be more than 14% and typically is 4% higher than credit cards that do not offer the cash back rebate.
2. Tiered percentage rate cards – These cards are ones that have a tiered system of awards, usually from 0.25% to more than 1%, depending on the amount of money you charge on the card. It depends how much money you charge on that specific credit card.
It is usually the case that these kinds of cash back credit cards are a better option if you spend more each year where the payout will usually be less than a flat percentage rate card if you spend less than $5,000-$6,000. Very similar to flat rate credit cards, some cash back credit cards will offer a higher rebate on targeted or specific spending and a lower rebate percentage on all other spending on the card.
Other Fun Prizes. Rewards credit cards are similar to the cash back credit cards, but you do not receive cash back you receive points that you can redeem for things such as airmiles for travel perks or discounts on merchandise and/or services.
Racking Up The Points - These kinds of credit cards, when used, will reward you when you spend on the card giving you things such as hotel stays, package vacations, and discounts or free airline tickets. Generally you will get anywhere from a single to several points, or airmiles, for every dollar you charge on the credit card.
The points or airmiles are redeemable for specific travel related services with companies affiliated with that card such as airlines, hotels chains, and rental car agencies. An important thing to know about credit card rewards, especially frequent flier credit cards or points cards, is they carry a higher annual fee than most other types of credit cards.
These cards can have a fee of around $50, but some cards have annual fees that are around several hundred dollars, it all depends on the credit card. Considering the fees are higher, you should only look into getting a card like this if you are a frequent flier with a single airline or stay at one hotel chain often. A frequent flier credit card can be good for businesses that are affiliates with an airline as the miles can add up quickly with business travel.
Retail credit cards – These types of cards are very similar to points or frequent flier credit cards, but they give different rewards. The retail credit cards can be a Shell gasoline credit card or a Sears credit card. Many of these types of credit cards offer discounts on the merchandise they sell and some even have cash back programs if you patronize their stores often.
It is usually the case that these credit card rewards programs are ones that are tiered as they give better rebates or discounts for purchasing their products or services. There are still rewards if you spend on the card at other places but the rebate will not be as high or you will not earn as many points.
Automobile reward cards – There are many automobile manufactures that have credit card offers for rewards programs that give consumers the incentive for using their card for future automobile purchases. A good example of this general Motors and one of the cards they offer, the Household GM MasterCard.
This rewards credit card offers a 5% cash back rebate on all purchases made on the card. Also many automobile rewards credit cards will let you set aside and accumulate your points for the specific purpose of buying a new automobile for a discount rate for up to 7 years.
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