How to choose the best rewards card for you
Updated Aug. 26, 2021, at 10:45 a.m. CT
By Jim Bemboom | Card services manager
Who doesn’t like to be rewarded?
Rewards credit cards “reward” you with some type of bonus or extra perk when you use them. And when used correctly, these cards can be a great way to get the most out of purchases you already planned to make.
But not all rewards cards are created equal. And some of their benefits can be confusing. About one-third of cardholders don’t completely understand all of the benefits available to them, according to a J.D. Power Credit Card Satisfaction Study.
Learn how to spot the pros and cons of these cards so you can get the most out of your rewards card.
Know the potential drawbacks
When looking for the right rewards card, you’ll want to be aware of a few potential drawbacks:
What rewards factors you should weigh
Knowing how each card works can help you weigh whether the benefits are worth it to you. Here are some features to consider:
Annual percentage rate
Expect a rewards credit card to come with a higher APR than a traditional one because you’re being rewarded.
Find out what the APR is, and determine what your goal ultimately is with any debt you might have.
For example, if you’re trying to pay down debt, opening a credit card with a higher APR—even with rewards—might not be in your best interest.
Find out whether debt consolidation is right for you >
Annual fee
Some rewards credit cards come with annual fees that could cost you hundreds of dollars each year. You shouldn’t have to pay to be rewarded.
Dupaco’s Rewards Visa has no annual fee.
Check out Dupaco’s Rewards Visa >
Usage
Some rewards credit cards can only be used for certain purchases or at specific stores, such as airline tickets or gas stations.
If you don’t make frequent purchases at those businesses, that rewards credit card might not be the right one for you.
Redemption options
Some rewards credit cards only allow redemptions on certain things, such as airline tickets. So if you don’t fly a lot, consider a card that rewards you for the things you use.
With Dupaco’s Rewards Visa, you earn points with every purchase, and can redeem the points for a variety of options, including:
Carrying a balance
If you carry a balance on your card from month to month, make sure your rewards outweigh what you would pay in interest each year.
How to get the most out of your rewards card
Once you have your card, you’ll want to take full advantage of its perks. Here are some ways to get the most out of your card—without busting your budget:
Use it as frequently as possible
If the card isn’t store- or purchase-specific, consider using it more often to pay for purchases you already plan to make.
Some people use their rewards credit card for all of their expenses—gas, utilities and cell phone bills—and pay it off each month.
But this still requires budgeting to make sure you can afford those charges.
Stay within your means
Again, make sure that any charge you make is part of your budget. Spending more than you can afford—just to earn rewards—isn’t worth it.
5 tips to stay within your budget with credit cards >
Pay your balance in full
Pay your balance in full, or as close as you can, each month. This way, you’re not paying interest on top of your purchases.
Even if you don’t pay your balance in full, a rewards card might be an option. Dupaco members who carry a small balance from month to month can still benefit from Dupaco’s Rewards Visa.
But everyone’s financial situation is unique, and Dupaco can help you decide which credit card is the right option for you.
Use those points
You don’t want to leave rewards on the table.
Remember to use those points you’ve already accumulated before they expire. There’s nothing worse than working to save points to use for something special, only to find out that they expired!
