Credit cards can make buying almost everything a bit easier. But wouldn’t you like to make your credit card work even harder on your behalf? Of course.
A rewards card is a type of credit card that provides you with benefits, or “rewards,” that come with almost every purchase.
“There are all kinds of rewards cards available,” states Nate Bacon, PNC’s head of Credit Cards. “If you’re smart about using them, rewards can absolutely enhance your life. Some, such as cash back cards, can help stretch your monthly budget. Meanwhile, others could help pay for a vacation or get you additional benefits at your favorite stores, airlines, or hotels.”
Some of the more popular rewards credit cards provide you with cash back on eligible purchases, either as a rebate detailed on your monthly statement, or as a direct deposit into a checking or savings account.
One example? The new PNC Cash Unlimited® Visa Signature® Credit Card, offering 2% cash back on eligible purchases to help cardholders optimize their spending.
“Our clients want to earn rewards, and they want it to be easy to do so,” offers Bacon. “Our new Cash Unlimited credit card makes earning cash back on eligible purchases uncomplicated,” said Bacon. “you simply enjoy two percent back on every eligible purchase, no categories to worry about, no opt-in required.”
Some cash back cards offer further amenities. As one example, a key differentiator for the Cash Unlimited credit card is its flexibility when it comes to redemption. Customers can redeem cash back as a direct deposit or statement credit, or for gift cards or travel.
Further, a cash back rewards card may offer other advantages, such as no caps on earnings or low introductory APRs on purchases or balances transfers.
Finally, there are other extras, such as mobile phone and fraud protection—and no foreign transaction fees. These extra features can make for a high-powered credit card option for those who are on the go.
Meanwhile, there are other rewards cards that let you accrue points with purchases. Depending on the issuer, those points can be applied to travel or the purchase of a wide variety of products.[1]
“There are all kinds of rewards cards available offering points,” states Bacon. “If you’re smart about using them, points cards could help make life a lot more fun.”
Whether it’s points or cash in the bank, rewards cards are a terrific option when used the right way.
First, Conduct A Little Research
As mentioned earlier, not all rewards cards are the same. When choosing, your most important question is, ‘What kind of rewards do I want the most?’
In addition to its Cash Unlimited credit card, PNC has a number of rewards credit cards, each one suited to meet a particular need. The ideal card for someone often depends on their goals, interests, and spending habits. What seems perfect for one cardholder might not resonate with another. Some cardholders might be all about the money or cash back. Others may see their credit card as a way to help them see more of the world on a budget while using their points.
There are also other factors to consider. Does that card have attractive terms? In the case of a rewards credit card offering points, how quickly do those points expire? What limitations exist?
Bacon offers some wisdom when it comes to evaluating cards.
“Comparing different cards, their terms, and interest rates is always recommended. In the case of points, pay close attention to the offer terms. After all, the last thing you want is to save points over an extended period, only to see those points vanish when that offer period lapses. Pay attention if the card has blackout dates for travel or if there are limits on how many points you can accrue. Above all, redeeming points should be quick and convenient for the credit card holder.”
At the same time, it’s always good to know the basics, namely the credit card’s terms, interest rate, annual fees, security features, and perks such as introductory rates, and balance transfer offers. As a precaution, pay special attention to any restrictions that might be buried in the fine print.
And of course, some issuers offer sign-up bonuses that take effect once you’ve reached defined levels of use—which could potentially kick start your rewards in a hurry.[2]
Make Every Purchase Count
Ready to get those rewards working for you? It pays to monitor your account in online banking or the mobile app and read your e-mail from the credit card issuer. Yes, it literally pays.
“Credit card companies are always coming up with new offers, sometimes in conjunction with retailers or hotels or other affiliated partners,” offers Bacon. “Sometimes the offer might be a significant discount, an extra night’s stay, or bonus miles. And those offers change all the time.”
That means staying on top of what communications your credit card issuer sends your way. Yes, it takes a few extra moments , but chances are it will really be worth your while.
Now The Fun: Redemption
If you have a cash back rewards card, you’ll see the results in your monthly credit card statement. However, when it comes to points, you definitely want to see the fruits of your spending.
How many ways can you redeem your points? It depends on the issuer. But many issuers offer several different options.
Points are usually redeemed via the lender’s app, by visiting the card issuer’s website or calling a specified telephone number. This information is found in the Terms and Conditions of your credit card, along with specific provisions, exemptions, and other important information. It is recommended you review this information as early as possible when considering redeeming your points.
But above all, redemption should be easy. As Bacon points out, “The goal for the customer should be to redeem what they want, how they want, and when they want. It should be easy. If I want to redeem at 3 a.m., then the credit card issuer should make it effortless. That’s the true mark of a good rewards program.”
But It’s Still A Credit Card
In all the fun of accumulating points and deciding how to spend them, it remains important to both maintain a good payment history and follow all the other stipulations when it comes to usage. As Bacon concludes, “Don’t get so focused on rewards that you spend above your means, paying on time and protecting your credit is still the most important thing. To make this easier, regularly monitor your account in mobile and online banking and consider setting up auto-pay to make sure you never miss a due date.”
But if you use your rewards credit card responsibly, it could pay off for you big time. All you need is to be a little savvy.
