If anything, credit cards have become more difficult to compare than ever, especially if you are looking at rewards credit cards. However, if you don’t take the time to evaluate each card for all of its features, you could be missing out on rewards that actually fit your lifestyle. Some credit cards have excellent rewards with high interest rates, while others carry annual fees or have limitations on how you can use those rewards. However it is important to note that rewards programs are not for people who carry a balance. The interest you’ll be paying will quickly exceed the the value of the benefits. You must pay the balance in full every month.
Hilton HHonors Platinum
One of the most popular hotel rewards credit cards is the Hilton HHonors Platinum, which carries no annual fee and requires excellent credit for approval. As you might have guessed, this card is affiliated with the Hilton family of hotels, so purchases on the card translate into points that you can redeem for free hotel stays.
When you make your first purchase with the Hilton HHonors credit card, you get an automatic 10,000 rewards points to start you off. This is enough to pay for one free night at a Hilton hotel, which is an attractive bonus. However, every subsequent qualifying purchase (hotel stays, gas, supermarkets, drug stores) earns you only 5 points, so it will take another 2,000 purchases to earn another free night.
This particular hotel credit card might be worth it if you intend to make several qualifying purchases every week, and if you tend to stay in Hilton hotels for business or pleasure travel.
Wyndham Rewards MasterCard
Another option for hotel rewards points is the Wyndham Rewards MasterCard, which is issued by Bank of America and has a lower APR. The rewards points are established differently from the Hilton HHonors. You earn 13 points for every dollar spent on qualifying hotel stays, plus two points on every dollar spent with every other purchase.
The types of hotels you can patronize to earn and redeem rewards points include Travelodge, Super 8, Ramada, Days Inn and Wyndham Hotels, but the difference is more in the numbers. With this rewards credit card, you earn points with every purchase you make, and more points when you stay in these hotels. Additionally, the lower APR will be beneficial to cardholders who tend to carry a balance.
Capital One No Hassle Miles Rewards
Airline credit cards are even more popular than hotel-linked credit cards, and there are more of them from which to choose. The Capital One No Hassle card is one such option, offering no annual fee and a midlevel interest rate. When you use this card for any purchases, you earn 1.25 miles for every dollar spent.
There are no blackout dates on this card, even on holidays, and your airline miles never expire. Also, there are no limits to the number of miles you can earn in a given time period. This is probably the major benefit to this card, as many airline miles rewards cards have expiration dates on each of the miles you earn.
Don’t Forget to Use the Rewards
Many reward programs expire. The fine print obfuscates the expiration date, but it is noted somewhere. Be sure to know when points or miles disappear, and don’t be afraid to use them.
However the rewards you earn may not belong to you. Some government agencies lay claim to anything solid or intangible “that is purchased with Government funds.” If your credit card is a corporate credit card, any rewards or frequent flyer mileage may belong to the company. Be sure to check your company’s policy before redeeming rewards.
Comparing rewards credit cards should be a high priority when shopping for a new card. Consider the types of rewards that will benefit you most, as well as the specifics on earning rewards and the interest rate. In some cases, high APRs, annual fees and other convenience fees will overshadow all benefits of the card.
