Getting the most out of credit card rewards also means being selective as you go about comparing cards. The higher your credit score, the more attention one should pay to the advantages you’re getting out of the card(s) you apply for.
If you’re a retail maven, compare cards with generous cash back structures. Some cards offer unlimited cash back on all purchases up to a certain spending threshold; others impart higher cash back percentages according to various spending categories assigned by the card issuer. Experts recommend seeking out a credit card that gives back at least 1 percent in cash returns to make it – and your finances – worthwhile.
In the case of travel points and miles, do your due diligence by finding a co-branded card that links rewards directly to your preferred airline or hotel chain of choice. Or, research cards that allow you to transfer miles or points to another carrier, so your rewards haven’t been built up for nothing.
Building excellent credit didn’t come with racking up an unpaid balance. However, if you’re prone to carrying a balance on your card (from time to time, that is), look for credit cards that have low APRs. Keep in mind choosing a credit card that is right for you can be a big decision, so take your time and shop around. And, as you already know, but just a reminder make sure you keep your credit card spending within your means.