Taking a Look at Rewards Cards

Everyone’s wallet has a brightly-colored, square piece of plastic called a credit card in it. Whether its a Visa, Mastercard, American Express, or another brand, these cards help us pay off our debts, purchase meals, and go grocery shopping.

But outside of the regular types of credit cards, there is another category. Rewards cards give consumers cash back, gift cards, prizes, and free flights. Their perks seem endless, but many come with hidden fees and high interest rates. Here are just a few examples.

• Southwest Airlines Rapid Reward Visa – Credits on this card can earn you a free flight, and when you sign up for this card, you get just that. You receive Reward Dollars with every purchase, which can help you purchase another flight, and it also comes with a series of benefits which get you last minute dinner reservations, reduced hotel prices, and tickets. But do not let these exciting perks fool you. With no preset spending limit and an annual $57 fee, this card makes you pay for using it. 13.24% APR on purchases and 29.99% penalty APR for late payments mean you have to be very careful about paying off your balances.
• Capital One Venture One Rewards Credit Card – One of the better rewards card choice, this card allows you to fly free on any airline and redeem the miles you earn from spending money on tickets, hotel rooms, car rentals, and more. With no annual fee and 0% APR for the first year, this could be the right card for you. However, in order to actually get the 13.90% regular APR rate, you have to have excellent credit.
• Starwood Preferred Guest Credit Card – On this card, accruing points can get you free nights in a hotel. A lower introductory 2.90% APR for six months is followed by a 15.24% rate and an annual $45 fee. Again, this card requires excellent credit. Note that fees and APRs can change quickly from year to year.

These cards are just the tip of the iceberg in the world of rewards credit cards. Always watch out for hidden annual fees and high APR rates that could send you into debt if you forget to make a payment on time. The perks can work to your advantage, if you use them intelligently. To find your rewards card today, let San Diego Banking Rates help you find the most recent and competitively priced credit cards.