Finding The Best Credit Card Rewards

There are a lot of places that claim to know the best credit card for rewards, but the truth is that the best rewards for credit cards are truly up to the individual who uses them.  The reason is that each person values things differently.  So, instead of relying on a site that tells you the best, look for a site like Totally Money to help you to compare credit cards, and follow this simple guide to find the best credit card rewards.

Figuring Out Your Value for Rewards

The first thing you need to d to find the best credit card rewards for you is to figure out what type of rewards you value the most.  For example, you could really enjoy traveling.  As such, credit cards that give travel rewards like mileage and hotel stays could be very valuable.  They may become even more valuable if they are with an airline that you already accrue miles with.

Maybe traveling isn’t your thing, but you like just getting cash back.  Well then, look for cards that offer a high cash back amount, especially in categories you spend the most money in.  Different cards offer different rewards for different things, like dining, shopping, or gasoline.  Look at your past spending and decide which could be best for you.

Calculating the True Worth of Rewards

Finally, before you pull the trigger on a credit card, you should look at true value of the rewards.  I like to compare all rewards to spending cash back.  For example, if the best rewards card is giving 2% cash back, which means that I need to spend $15,000 to get $300 in cash back rewards.

I then look at how this equates to the mileage and points cards.  For mileage, look at Orbitz or another online flight and see what $300 gets you.  Then see how many miles you need to redeem for that flight, and how much it cost you to accrue that many miles.  For example, if you get 1 mile for every dollar, and a $300 plane ticket costs 15,000 miles, you’re on par with the cash back.  But if it costs more, the cash back may have been the better option.

Good luck Penny Hoarders!

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