March 16, 2009
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News: Choosing the best Credit Card Rewards.
Much is being touted over the worthwhile pursuit of getting credit card rewards programs to work for us. It's a good thing, as many credit card consumers have came to realize. With so many conditions already working against credit card consumers like unexpected rate hikes, lowered borrowing levels and new advances in added fees, not to mention the extreme difficulty in staying out of default when family income goes away, these people need a break.
Credit card rewards programs have, traditionally, taken a back seat priority because, by and large, the terms are so hard to understand and the returns have been so meager. Recently, Consumer Report has come to the aid of it's subscribers and outlined the best overall credit card rewards deals.
Still, there's a lot to sort out before we can all realize the nice surprise that one woman got for doing it right – a $681 return for a normal year's healthy credit card spending habits. One size does not fit all, however and we can't all just automatically model what she did.
It's convenient to divide credit card rewards seekers into five basic categories: Frequent Fliers; General Users; Duffers; Habitual Shoppers and Navigators. The original flagship, ‘Frequent Fliers' will be presenter here. But for the greater depth of the other categories, please refer to the article series entitled: "Guidelines for Choosing the best CC Rewards ".
Frequent Fliers: In today's economy, this realm has shifted into the ‘extravagant' category (pleasure flights ,cruises, Broadway shows, etc.). For the extravagant shoppers, there are some good shopping discounts for that market. In addition to the 1% to 5% cash back rewards you can get by using credit cards, you can also get great deals by shopping within the program.
1) Investment: If you do that kind of shopping, the savings can be substantial (compared to retail prices).
2) ‘Other purchases': Many plans offer deep discounts for shopping at their affiliated retail outlets. Hundreds of stores and entertainment venues to choose from.
3) Recommendations: You might be interested in rewards programs like:o Citi/Citi Cash: The shopping discounts start at 5% and run all the way up to 60%.
o Discover/More: The shopping discounts start at 5% and run all the way up to 20%.