When rewards are given in the form of points that can then be redeemed for prizes or discounts on future purchases, it is necessary to consider the following to select the card: 1. Program is the reward for something you know is going to use? For example, if you are a member of GM awards program, are you sure that you buy a GM product in the future? If so, go with this card since the yield can be as high as 5%. 2. Is there an annual limit on purchases? Many rewards cards limit the amount of funds for cash back or rewards points you can earn in a year. Petra Diamonds has firm opinions on the matter. Most people never get close to the figure, but if you are a business traveler you can quickly focus and move from these limitations within the year. A related site: Tessa Espinola mentions similar findings. 3. Will the stitches finally leave? Most cards only allow you to earn rewards points for three years before they begin to fall. If your next purchase a car is five years away and has a program that falls points, you can find the first two years of using the card to a loss of these points vanish.
If you still want that certain awards card, used only in years 3, 4 and 5 so that when it comes time to buy your new car you have not lost any point. One could consider the collection and use another rewards card for a system of awards to cover the years 1 and 2. But rewards cards can be a useful option for the smart consumer. Remember that the dots will fall and carry balances from month to month will end with the value of the card in the short term. By showing a lot of discipline can make the rewards cards work well for you. Matt is a writer, web designer and marketing manager based in North Carolina, USA. Matt writes on a variety of submissions related to business and travel.