Credit Card Miles Bonus Tracking Diy Easy

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Credit cards used to just offer flexibility when you needed to pay for something before payday but now they can be used as a reward card offering cash back or air miles every time you spend. Credit cards aren't essential for most people who manage their money well but they offer better protection than debit cards when shopping online or when you go on an international holiday. You don't need a great credit history to get a card anymore so they're not just for those who have built up a good FICO score.

Cash Back or Air Miles

There are lots of different rewards including money off in a chain of stores, sign up bonuses and reward points but the two rewards that give the most back to consumers are cash back and air miles. Which is best? Getting cash back on every purchase is a great reward for using the card. If you're disciplined enough to pay the card balance in full before interest is applied, you'll be making money every time you spend on the card. Air miles accrue with every purchase but how much are they worth?

The value of one air mile depends on who the carrier is, whether you're flying international or domestic, whether you're in coach, business or first class, the time of year you're traveling and whether you're flying at the weekend or a weekday. As most of us know already, the price of a flight changes depending on all these factors and a few other variables but on average each air mile is worth less than two cents. Even if you're a frequent flier, we recommend that you go for a credit card that offers cash back.

Credit Card Cash Back

How much cash back do you get from a typical credit card? Cards offer between one and five percent cash back on eligible purchases. You'll need to read the fine print to find out which purchases are excluded but most cards refuse to give money back on balance transfers, wire transfers, and cash advances. If you return an item purchased with the card, some card issuers will claw back the reward when the refund goes through.

What's the Highest Cash Back Offered?

The highest amount of cash back offered is typically five percent but not everyone will qualify for a card with that reward. To get a credit card with cash back you need a good to excellent credit score. The only five percent cash back cards that a consumer with bad credit is likely to be accepted for is a store card. Historically these closed-loop cards are handed out to those with poor credit or young people who have no credit rating because they come with high-interest rates and only allow the customer to use them in one chain of stores. You can get store cards that offer cash back on purchases but the interest rates, which can be as high as 30 percent, will overshadow any profits made from the cash back offered.

Cash Back Card Comparisons

Credit cards are tailored to your financial circumstances which is why the card's APR is listed as "variable". Those with the best FICO scores will be offered the lowest APR and vice versa. The APR also differs depending on the type of purchase made on the card. Balance transfers may be charged more or less interest than purchases. Taking cash out with a card is typically charged a higher APR than the equivalent purchase. All of these details can make one card far better for you even if it has the same advertised APR and the same reward as another.

Don't Count on the Bonus

It sounds like obvious advice, but don't take a card out because of the bonus attached to it. The bonus is an extra. The card's interest rate is the most important thing to consider, and then there are other considerations such as how often merchants accept the card, which isn't normally a problem if you take out a Visa or MasterCard but can be an issue with an American Express card. The fees attached to the card and other items like the card issuer's customer service record should also be taken in to account. The J.D. Power's credit card satisfaction survey from 2016 ranked Discover and American Express above rivals, but neither uses the Visa or MasterCard network so their cards aren't accepted by as many merchants.

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Source: https://www.life123.com/article/which-credit-card-bonus-is-best?utm_content=params%3Ao%3D740009%26ad%3DdirN%26qo%3DserpIndex&ueid=c019c59c-c8f6-40b9-a327-d67de6b04a31

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