Top 5 Offers on Reward Credit Cards

by Shannan

gas pump

Credit card companies offer a variety of perks for signing up to use their credit cards. Because the industry is so competitive, these rewards can be quite enticing.

When choosing the right credit card for your circumstance, it’s important to think clearly about which type of reward you will most benefit from. For that reason, we’ve put together a list of the top 10 reward credit card offers:

1. Gas & Fuel based rewards

With today’s rising gas prices, many people are drawn to credit cards that offer cash-back on gas and fuel purchases. If you drive a lot, this can be a great rewards card for you. Some gas credit cards offer up to 10% back. But you should also be careful. Many cards only offer cash back on gas, some even at just one type of station. All other purchases will get you either nothing or a low rate for all other purchases. Plus, these cards tend to have higher interest rates so you’ll never want to carry a balance.

2. Travel and Airline Miles based rewards

If you are a frequent traveler, you may find that the bang for your buck comes from an airline miles rewards card. Rather than cash-back, you earn credits that can be applied to certain flights (often limited to domestic flights). There are debates about whether the value of the credits earned for travel are as valuable as pure-cash back cards, but the ability to earn bonus miles for various transactions can make these a good card to have if you travel a lot.

3. Balance Transfer Offers

If you are carrying a high-interest balance on other credit cards, and need some interest free catch-up time to pay them off, consider choosing a good balance transfer offer. The best balance transfer offer I’ve ever seen have 1) waived the transfer fee of 3% and either 2) been 12 months for 0% interest or 3) 3.99% with no time limit other than minimum monthly payments.

Just to reinforce: if you are currently paying a high-rate, you’ll effectively make the most money not from a rewards card, but from a low-interest balance transfer.

4. Shopping Cash Back

These cards are for heavy shoppers and can get you up to 20% cash back on purchases made at select stores. The obvious limitation to these cards is that they force you to shop at specific retailers. But if you are ok with that, or already shop at these stores a lot, then you can get some serious cash back rewards.

5. 0% Purchase Offers

If you’re going to be making some major purchases in the coming months, but want to stretch out the payments interest free, then you might consider a 0% purchase offer. While not actually earning you cash back rewards of any kind, this kind of card can save you money on interest (and if you’re really smart, you’ll invest the money in short term investments like CDs, money market funds, etc.)