Contributions done by Justin Martz & JW Rayhons 

It is undeniable that credit cards are a part of life. They are a tool we use to help with many daily and unexpected things in life and they have many benefits. Although there can be some downsides to using credit cards incorrectly, “When used responsibly, credit cards can be valuable tools for earning rewards, traveling, handling emergencies or unplanned expenses, and building credit.” But, with so many choices - which one do you choose? Let me offer a few tips on what to look for to pick the best rewards card for you.

What is the annual fee?

Most, but not all, reward cards will have an annual fee to offset some of the reward of the card. Those that do will typically offer a better introductory deal or a better point system. Fees can range from 95.00 annually up into the hundreds. For instance, the American Express Platinum card has an annual fee of 550.00 vs their Blue Cash preferred is 95.00. Most cards have a way to “avoid” or pay for the annual fee through their reward program. 

What initial bonus are they offering?

Most cards have a current offer that you receive for opening the card. These offers will be either points or cash and be dependent on an amount of initial spending within a specified time frame. For instance, the Citi Premier card will give you 60k points if you spend 4k within 3 months, and the Chase Freedom unlimited will give you a 200.00 bonus if you spend 500.00 in the first 3 months. Since these offers vary so much it is really personal preference one which will be best for you and your spending. 

What are their rewards for the things you use the most?

Cards will either offer cash back or points to purchase with (cash is usually included). Depending on if you just want cash or the option to purchase other things you need to decide but more important is the % cash back or multiplier of points for the things you use the most. For instance, the Capitol one SavorOne cash rewards card has 3% on dining and entertainment, 2 % grocery stores and 1 % on all other; whereas the Citi Premier Card includes 3% on Gas, Air Travel and hotels. 

Again, with all the cards availably to you in today’s world be sure to chose the one that will benefit you the most and give the best rewards that out weigh an annual fee, that pay a good initial bonus and you can be rewarded the most for things you use the most.

To help you decide

Here is a list of websites that can help you decide on which ones are best for you: 

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.

www.thepointsguy.com

https://www.nerdwallet.com/best/credit-cards/rewards

https://www.valuepenguin.com/best-rewards-credit-cards

https://creditcards.usnews.com/rewards

https://wallethub.com/credit-cards/rewards/

There’s more to life than money! The Rayhons Financial family are professionals that want to help you. Connect with us for an initial conversation, call us at (480) 507-2425 or contact us online. We’d love to meet you.      

Justin Martz is a Non-Registered Associated Person with Cetera Advisor Networks, LLC.  Justin does not offer securities or advisory services.

The content in this article was prepared by the article’s author. Cetera Advisor Networks, LLC does not endorse its content, and the views expressed may not necessarily reflect those held by Cetera Advisor Networks, LLC.