In the past, reward credit cards were limited to cards with Frequent Flyer Miles Programs. Today, as credit card holders continue to grow and as the competition among credit card companies grows even stronger, the emergence of rewards credit cards is undoubtedly an effective marketing strategy in attracting clients.

With this in mind, it is obvious that not all reward credit cards genuinely bring rewards to its users. Therefore, as a consumer, it is your responsibility to be aware of reward credit cards that offer great deals and those that do not. In this article, let’s discuss the features you should look for and the things you should avoid in a reward credit card.

Features to Look For

The Right Kind of Reward. What particular reward program can you benefit most from? Are you a frequent traveler? Do you drive a lot and spend a lot in gas? Or do you just use your credit card for shopping and groceries? Whether you choose a Frequent Flier Credit Card, a Gas Reward Credit Card, or a reward credit card with Cash Back- what matters is that it matches your spending habits and your lifestyle.

Find out more: What to Look For and What to Avoid in Rewards Credit Card

Generally, the card holder needs to earn points that are equivalent to gas purchases, free travel ticket, free hotel accommodation, car rental, appliances and other cash purchases.Of course the rewards earned will depend on the type of reward credit card you have.Point systems also differ with every credit card company.

There are hotel reward credit cards that give as much as 5% rebates for purchases or expenses made from participating hotels, airlines, and establishments.Some travel reward credit cards and hotel reward credit cards also give away instant bonus points when the card holder makes his first purchase.Other credit cards award instant points the moment the customer signs up for the card and gets an approval.

When it comes to cash back credit cards, most of issuers give a 1 point or double points for every dollar spent on general purchases.Cash back credit cards usually allow its card holder to earn points regardless of where the purchase was made or what type of purchase it was.For this reason, many consumers prefer to apply for cash back credit cards because they offer more flexibility and more opportunities to collect points.

Find out more: How Do Credit Card Rewards Work?