Cash Back On All Your Holiday Shopping

'Tis the holiday shoppiny season again and most consumers will likely use a credit card on at least some of their purchases

. Since you will be spending money anyways, why not earn a gift back by using a rewards card? You would be surprised at just how quickly points can add up. These points can be redeemed for anything from cash to airline miles! If you have a regular Visa or Mastercard, you may want to look into switching to a rewards card. Over time these cards can prove to be very valuable to their users and can help make spending money this holiday season less stressful.

A rewards card works exactly like a regular credit card, except for the fact that it provides services and/or bonuses to card holders for their usage. Some of the time, the card companies will give cardholders specific locations and companies to make purchases that earn them special rewards. This encourages them to make purchases with certain companies by rewarding double rewards points for doing so. For example, a Business Rewards card will usually only reward points when business related purchases are made. Extra points are typically awarded for doing business with such companies as FedEx, Kinko's or OfficeMax. For card users rewards cards will typically award points for purchases like food, gas and other common daily expenses. Other times, they will simply give you rewards based on the total amount spent using the card, with cash back on purchases being typically in the range of 1-3%. It all really depends on what company and what card you are dealing with, so it is important to check exactly what the rewards card agreement entails rather than assume points are being earned on all purchases. Most companies are quite upfront with this information and even have a special webpage that tells you where you can purchase items for bonus rewards points.

The kinds of rewards you get will also depend on the type of card you are dealing with. There are three main types of rewards cards on the market; those that accumulate points towards cash back on some of your purchases, those that accumulate airline miles that can be used for travel and those that accumulate actual points. These points can be exchanged for a variety of different prizes such as trips, tickets to events, big discounts at specific locations, certain items such as toasters and much more. Often the credit card companies will allow you to sign up for one or more of the available options and then give you a specific card. Other times, card companies may even let you change the type of rewards and stay with the same card if you are not certain what exactly you would like to earn with it.

It is important to take into account a lot of different factors when deciding what kind of card is right for you, but the biggest thing is to choose one that you will actually use. If you do not travel much then a card that gives airline miles is probably not the right choice. If you know that you would rather receive extra cash than turn points in for things, a cash back card is a better option. In the end only you know what is right for you and your lifestyle, so just make sure you make a decision you know you'll be happy with.

There is only one real catch when it comes to rewards cards; they typically come at a slightly higher Annual Percentage Rate (APR). While it is not an astronomical difference, in order to get the full benefit of the rewards card, it is in your best interest to pay off the balance quickly and keep up with your payments regularly. While you may be tempted to spend more knowing that you have rewards on the way, try to contain yourself. You will still need to pay it all off eventually- rewards or no rewards. Try to think of the rewards more as a bonus for being a good customer. Once you can do that it will be easy to end up with plenty of benefits. Rewards are basically free money when you handle your cards right. If you are the type of person who pays off their balance each month, Rewards Credit Cards are the perfect option.

You can get a rewards card through any major credit card company including the ever popular Visa, MasterCard and Discover cards. All of them offer some sort of approval process online and can have you an answer on your request in most cases, less than an hour. Generally, if you can be approved for a normal credit card, you will also be approved for a rewards card.

by: Louis Fabiano

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