If you’re using a credit card that doesn’t offer rewards points, it’s time to make a change. For people who use their credit cards frequently, rewards points can add up fast and when you use your card at certain stores, you’ll receive up to five times the rewards points. You can use the points for travel vouchers, cash back, or merchandise.
If you don’t pay your balance in full at the end of the month, rewards points are worthless. In this case, find the card with the lowest interest rate and pay off your balance as quickly as possible. After that, don’t charge more than you can pay at the end of the month.
When you shop for a rewards card, don’t read about the exciting rewards offers until after you read about the interest rate, annual fees, and other terms. Read the smallest print first and save the exciting headlines for last.
If you’re looking for a new rewards credit card , these three cards are worth further research.
Chase Freedom Visa
® Visa – $200 Bonus Cash Back” border=”0″> If you’re free of bankruptcies or delinquent accounts, the Chase Freedom Visa card  is a new rewards card that lives up to the hype. You can read more about their current rewards by clicking here . If you have a damaged credit score, qualifying for the card may be challenging and if you do qualify, your interest rate may be unfavorable. Review the terms offered to you carefully before commiting to the card.
Chase Freedom Visa card offers $200 back after your first $500 in charges within the first three months, 5% cash back each quarter when you purchase in certain bonus categories, and up to 10% cash back when you shop through chase.com with selected merchants. All other purchases qualify for 1% cash back. The card continues to receive positive reviews from consumers and credit card sites.
What’s a Prime Rate?
All of the cards above have a variable interest rate that is tied to the prime rate. (Read about the prime rate here ) For those with good credit, companies may add 12% to 20% to the current prime rate which represents the interest rate you will pay if you hold a balance. When the prime rate rises, the interest rate on the card rises as well. Variable rate cards are attractive when the prime rate is low but as it rises, they become unattractive. This is why you have to pay off your rewards card in full each month. (To find the current prime rate, click here .) Keep that in mind as you do your own research on these cards.
Always look at the terms of the card before reading about the rewards and don’t use high interest rewards cards if you’re going to hold a monthly balance. Credit card experts continually rank them as three of the best rewards cards on the market.