Your Credit Card Is More Valuable Than You Think (If You Have The Right One) A free iPad sounds great, until you realize that you have to spend $60,000 to get it. Here’s a look at some of the most popular credit cards on the market from various different banks and their reward programs. Jim Bourg / Reuters The world of credit card rewards programs can be particularly harrowing to understand, especially for first-time cardholders. Visions of first class upgrades and discounted gift cards scroll through the mind, though few people realize just how much one has to spend to get those rewards. Want a free iPad? With one card, youll have to spend more than $60,000. Or how about using points racked up after more than $1,300 in credit card purchases on a single $10 cab ride in New York City? That, too, is an actual reward on one cards program. According to Brian Kelly, a former Morgan Stanley recruiter who now runs The Points Guy, a blog on credit card rewards programs, simplifying the rewards universe isnt as easy, or helpful, as one would hope. Its all about options, in my opinion, Kelly said, adding that cardholders must figure out whats most important to them in terms of rewards — travel, merchandise, and gift card discounts, or simply cash back. No programs are exactly the same, so look closely and read up on credit card blogs and forums. Once you figure the sweet spots, you can probably get a lot more value out of your points than you thought. Heres a look at four of the most popular credit cards on the market from various different banks and their reward programs, in addition to Kellys two favorite cards out there right now in terms of rewards value. Chase Freedom Credit Card creditcards.chase Basic points description: 1% cash back on all credit card purchases and 5% on special quarterly categories. Discounts/Benefits: Some gift cards will take your points from 1% to 10% in value on each dollar you spend, but according to a Chase Freedom customer service representative, those promotions are limited. Right now, gift cards from Macys, Kohls, and Bath & Body Works will net you the most for your points and hard spent money. Merchandise and travel deals: Really none to speak of here, and the customer service representative could offer no clear reason to use points for merchandise or travel purchase in an effort to get discounts beyond the 1% and 5% cash back offer by the Chase Freedom Ultimate Rewards program. Sample points purchase: One iPad Air will cost you 63,000 Chase Freedom Points, or $63,000 in credit card purchases. Seeing as the iPad Air starts around $500, and 63,000 points would get you $630 cash back, this sounds like a bad use of those points. Better off taking the cash. View Entire List ›
Posted on: Sun, 10 Nov 2013 14:53:14 +0000
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