There are 199.8 million credit card holders in America, and 60 percent of those people own rewards credit cards. Even though over half of America's cardholders carry rewards cards, there are close to a third that lose out on the rewards they have earned. We can only assume that this is because many credit card users are unaware of how to earn rewards and how to cash them in for big savings.
The Credit Card Rewards Card Game infographic, will show you the tricks to earning rewards, the different types of rewards credit cards and how those sign-up bonuses actually work. Earning rewards is one of the best reasons to use a credit card, but you have to learn the rules of the game before you can win big.
Know the Rules
The first step to raking in the rewards is learning the rules of the game. The best rewards programs are tied to credit cards for excellent credit, which is a FICO credit score of about 700 and above. Let's take a look at some of the rules and fees that are often overlooked by consumers:
- Spending Tiers. Some credit card require you to spend a certain amount within a certain time period to earn the sign-on bonus, while others can earn the bonus after making their first purchase with the card.
Types of Rewards Credit Cards
Before you pick a rewards card, understand your spending habits so you can pick the best card for you. For example, if you travel a lot for business or leisure, you may want to consider the Capital One VentureOne Rewards Card. If you can follow the rotating bonus categories -- cards that earn bonus rewards that change every quarter -- Chase Freedom may be a good option for you. If you can't follow rotating categories, the Citi Double Cash may be a good fit instead.
Here are the types of rewards cards on the market today:
- Cash Back. These credit cards allow cardholders to earn anywhere from one to six percent cash back for their purchases.
Redemption Options
Rewards can be redeemed in a number of different ways, depending on your card's rewards program. Rewards can be redeemed as:
- Statement Credits. Using rewards in this way will simply put your earned rewards back into your account as a credit. Although it will reduce the total balance owed, it's important to know that some programs don't consider this as payment. Don't make that mistake or you could have a missed payment reported to the credit bureaus.
Cash in & Maximize Your Rewards
Once you know the rules of the game and understand your rewards program, you can start racking up the rewards. You'll want to pay close attention to your rewards statement that you should receive every month along with your bill.
Keep track of those rewards and make sure you are earning rewards as often as stated in the credit card agreement. Be careful not to cash in those rewards too soon because it may be worthwhile to rack them up to cover the cost of a high-ticket item. You can also purchase points to add to your program in order to cover an expensive purchase. It may sound like a complicated process, but once you understand all the rules you'll be maximizing rewards and taking full advantage of everything your credit card has to offer.
This article originally appeared on www.comparecards.com/blog: Rack up Credit Card Rewards and Win.