Question: Who Has the Best Credit Card Rewards Program?
Nice WSJ article showing the value of comparison shopping when it comes to credit card rewards programs:
With cash-back rewards cards, card issuers pay a certain percentage of the dollar amount that cardholders spend with their card. On average that figure was just shy of 1% during the fourth quarter of 2014, according to credit-card comparison website CardHub.com. But consumers will find a growing list of cards that offer more.
Why are these cash rewards program so valued by cardholders?
Many credit-card issuers also offer points or miles in exchange for dollars spent, but with those types of cards, the amount the points and miles are worth when they are redeemed can be reduced at any point in time. With cash-back programs, consumers are told what percentage of each dollar spent they get back and that dollar amount cannot be devalued, says Odysseas Papadimitriou, chief executive at CardHub.com.
Read the article to find out the three card companies whose rewards programs are quite a bit better than the average!
Check out the NGPF Lesson on Selecting a Credit Card
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.