Good Credit Rewards

Credit Rewards for Those with Good Credit

Are you sent tons of envelopes that say "You're Pre-Approved"? You may receive them if you are a person with good credit history and an impressive credit report. You may want to toss them out right away. Instead, take some time to examine some - some might actually be worth investigating. You have the good credit, which means you may as well use those advantageous perks, right? You just have to determine what seems reasonable to you. Look through the variety of pre-approved credit cards and study them carefully.

The incentive programs today are vast. There are frequent flyer cards, hotel rewards cards, gasoline credit cards, points reward cards, cash back credit cards, and bonuses such as discounts, vacations, and more.

Most of the perks today can be placed into one of the two categories - reward programs or cash back programs. Credit card issuers have found the strongest incentive for people thinking twice about submitting a credit card application.

Cash-Back Cards

Cards that offer cash-back programs can be attractive. These cards often go with an attractive introductory offer of a 0% APR.

Cash back rewards cards are plastics that give a rebate on the amount of money you spend on your card. Usually this is 1%, but some can go up to 5-10%. For example, if you had a plastic with a 1% rebate, you'd get $350 if you spent $35,000 during one year. Some cards also require you to carry a balance from one month to the other to count on the rebate. In most cases this would nullify the benefit considering the high rates that are charged on cards.

Points Rewards Cards and Frequent Flyer Cards - these cards reward spending on hotels, vacations, and cheap airline flights. You will get one or several point rewards (or miles) for each dollar spent. These, in turn, can be redeemed for specific services related to traveling. Something to consider is the high annual fee that most charge anywhere from $50 to several hundred dollars. Taking this into consideration, you should only get such a card if you're a frequent traveler and can accrue miles and point rewards to receive your bonuses.

• Retail cards. They work just like points and miles cards, except when it comes to the rewards. They can come in the form of gas cards, Sears, Starbucks, etc.
• Investments. These are cards offered by financial services institutions that offer bonus points used as rebates to be invested in mutual fund accounts, qualified accounts or in cash.
• Auto. Many automakers offer programs that give incentive to spend by offering rebates toward future car-related purchases. GM for example has a 5 percent rebate program on all purchases. And you can then accumulate bonus points and put it towards a new automobile. Small business credit cards usually offer this benefit to companies that frequently purchase vehicles.

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