Rewards credit cards offer so many features and benefits that it may be difficult to determine which one – if any – is best for you. If you’re looking to maximize the rewards offered by your credit card(s), here’s a primer to help you choose the best card for your lifestyle.
How do rewards work?
It’s simple: the more money you spend, the more rewards you earn. The catch is choosing a card that offers the type of rewards that will benefit you the most.
What types of rewards are offered?
Determining whether you prefer to have cash back or points to redeem for merchandise or travel will help you choose the right card for you.
- Cash back – Earn cash back for every dollar you spend. For example, with the Merchants Bank Visa Platinum Cash Back Card, you would earn a certain percentage, up to 1%, based on the cumulative purchases made that calendar year (click here to see specific percentages – link). The cash you earn is credited to your credit card balance each year on November 15.
- Rewards points – Earn points for every* net dollar you spend. For example, with the Merchants Bank Visa ScoreCard Credit Card, you earn one point for every* dollar you spend. Spend $1,000 and earn 1,000 points**. Points can be redeemed for airline flights, car rentals, merchandise and much more.
What else should I know?
Before you apply for a rewards credit card, ask these questions:
- Do my points expire?
Rewards points may expire if they are not used. Make sure to shop around to find a points expiration timeframe that makes sense for your spending habits. Points for the Merchants Bank Visa ScoreCard Credit Card don’t expire for five years.
- How do I redeem my points or receive my cash back?
Make sure that it’s easy to check your points or cash back balance. For points rewards cards, you also want to review the process for redeeming your points. On Merchants Bank Credit Cards, your current points and cash back balance are available on mycardstatement.com. Points can be redeemed through scorecardrewards.com, both available through the Merchants Bank website.
- Is there an annual fee?
Some rewards cards charge an annual fee. Research if the charge can be offset by the value of your rewards benefits or waived completely by spending a certain amount in a month or year. Merchants Bank only charges an annual fee for the Visa Platinum Cash Back Card ($30/year).