Virtually all credit card issuers are now offering rewards for using their credit cards, and it is essential for consumers to understand what factors influence the kind of rewards they get. The issue is not whether you need to get a reward card but the kind of rewards or perks that come with each card. It is often confusing to find a perfect match for a card but one thing that can help you is having a good credit score.
Credit scores are used to reflect the creditworthiness of a consumer, and it could be one indicator to the type of credit you get and the perks you enjoy. If you have good credit ranging roughly between 700 and 750, the card issuers see you as a potential customer, and they can offer you some of the best rewards. You will enjoy better deals if you have a good score.
While the premium rewards cards might be out of reach of many consumers, there are still cards for those with good credit ratings which offer substantial perks. As Scott Crawford, a former senior executive in HSBC’s credit card group says, if you are considering applying for a rewards card, the most important thing is to have some thought about it. Don’t just go for any card.
You may look for some of the deals online or get an email offering a good deal but unless the deal fits to what you are interested in, then it may not work for you. Consumers with good to excellent credit score have more choices for them offered by the issuers. They are targeted because they can offer potential business for the issuers. Some of the credit cards for good to excellent score include low APR, rewards cards, and cash back cards.
Because the card issuers view you as a low credit risk if you have a good score, they will offer you their best deals. In addition, they will check your credit and review your payment history in order to make sure you do not have excess credit card debt. Credit cards attract interest rates which are determined by the score. Those consumers with a good credit score enjoy lower annual percentage rates on their interests meaning that they pay less in their credit.
Choosing a reward card is not easy especially for those with poor credit score. Since there is limited number of options available for these consumers, it gives the people with stellar credit an advantage. It makes it easy for you to find the right rewards cards if you have high credit score. If you have a good score, you may save more money in perks such as cash backs, and airline miles points.
Nonetheless, consumers need to realize that card issuers are pulling back from the kind of hefty sign up bonuses which they offered in previous years, which made some consumers become hobbyists and chase for giant piles of points, as well as miles among other incentives. If you want to enjoy perks in rewards cards above other consumers, you should keep your score high.
For those looking forward to pay down their debts and do so while also enjoying the rewards, it is the right time to pick an appropriate card. Low rate offers such as 0 percent introduction rate on balance transfer and cash back capped on the high scale can allow consumers with good credit to save significant amount of dollars in both interest rates as well as purchases.