Here’s how no-fee reward credit cards are an amazing deal
Credit cards are a boon to those love shopping and are confident about managing their finances efficiently. Credit cards allow you to buy the perfect dress, or home appliances on credit, even if you are out of cash presently, and at the end of the month, you will have to pay the bill. Usually, credit cards prompt you to splurge incessantly on things, and this benefits the credit card company. However, there are certain credit cards, also known as reward credit cards that help you earn points on your purchase, and at the end, these reward credit cards utilize these points and “reward” you for using their credit cards.
If you still can’t figure out how no-fee reward credit cards work, keep reading.
What are no-fee reward credit cards?
- Certain credit card companies allow their customers the leisure of spending money and gaining reward for doing so.
- The customers receive certain points for shopping with the particular credit card, and the more points they earn, the bigger reward they can get.
- These rewards come in handy in plenty of ways, for instance, if you have amassed the required number of points, either you will get a cashback, or the same amount might be deducted from your next credit card bill.
- What makes these reward credit cards more appealing is that you don’t have to pay any additional fee to avail this type of credit card. It is absolutely free.
What are the types of rewards these reward credit cards offer?
These no-fee reward credit cards, true to their name, present the owner with rewards after they use the card for purchasing things. Rewards are of three kinds, cash, points, and miles.
- Cashback – These are the simplest reward offered by no-fee reward credit card. For each dollar you spend you will be credited a point or two. These points can be converted into cash after sufficient points are accumulated. You can use this cash in your next transaction, or you can have it deducted from your next credit card bill.
- Points – These are the best rewards that any no-fee reward credits cards would provide you. These points can be redeemed while booking flights, hotels or in restaurants which are collaborated with their credit card company.
- Miles – Certain no-fee reward cards offer rewards in the form of miles. These mostly function like travel cards. The more you shop with the particular credit card, more miles will be added to it. And, these miles come in handy when you book flight tickets from an airline that has collaborated with the credit card company.
Which are the popular no-fee reward credit cards?
There are reward credit cards that charge no hidden fee for the rewards they provide, unlike those that give rewards and the cost of the same is somehow extracted from the customer’s wallet. So, if you wish to opt for the best no-fee reward credit cards, choose from the best ones. They are as follows-
- Chase Sapphire Preferred Card
- Chase Freedom
- Blue Cash Preferred Card
- Citi Double Cash
- Discover it Cashback Match
- Capital One Venture
- Chase AARP Visa
How to choose the right no-fee reward credit card?
- Before you decide to opt for a no-fee reward credit card, decide which form of reward are you comfortable with- points, cash or miles.
- Ensure that you are confident enough to pay the credit card bill since the bank won’t be charitable when it comes to non-payment of dues.
- Look for hidden charges of the various so-called no fee reward credit cards. Many times, the “no fee” is purely misleading, and hidden charges might show up on your credit card bill.
So, the next time you decide to opt for a no-fee reward credit card, you will know what exactly you are looking for.