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Points Credit Cards
Points credit cards are the choice of many consumers due to their flexibility. Many prefer to earn rewards that can be redeemed for merchandise, travel, airline tickets, gift cards, or just about anything else you can buy online. When selecting a points credit card you have two different options. You can select a charge card which requires you to pay your balance every month or you can choose a traditional revolving balance offer (credit card) which allows you to pay off the purchases you make over time. Browse through the following points credit cards. When you find one you would like to apply for, click the button to load a secure application over the bank's official website.
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- Enjoy 0% Intro APR on Balance Transfers and Purchases for 15 months. After that, the variable APR will be 12.99% - 22.99% based upon your creditworthiness*
- Plus earn 1 ThankYou Point for every $1 you spend on purchases
- Earn an anniversary bonus on points earned from purchases every year*
- Enjoy no limit on the number of points you can earn
- Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more
- No annual fee*
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Intro APR
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Intro APR Period
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APR
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Annual Fee
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Balance Transfer
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Minimum Credit Required
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0.00%*
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15 months on purchases*
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12.99-22.99% (Variable)*
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$0.00*
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Yes*
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Excellent
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- $100 in gift cards - When you redeem the 10,000 bonus ThankYou® Points received after you make $650 in purchases and sign up for paperless statements within the first 3 months
- 0% intro APR for 12 months on balance transfers and for 7 months on purchases. After that, 12.99% - 22.99% variable
- 5 points for every $1 spent at restaurants and on books, movies and music. 1 point for every $1 you spend on all other purchases
- APR reduction on purchases when using credit wisely
- No Annual Fee*
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Intro APR
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Intro APR Period
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APR
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Annual Fee
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Balance Transfer
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Minimum Credit Required
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0.00%*
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7 months on purchases*
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12.99-22.99% (Variable)*
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$0.00*
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Yes*
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Excellent
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Points Credit Card Rewards Programs
Points programs entice many people, even more than the ever so popular cash back variety, as you can truly have it all with these offers. Points can be viewed almost as a type of "currency." You may have seen the commercials recently from American Express that come with the tagline "the social currency." The message that they are trying to convey is that when you use your card you can redeem points for things that you like, whatever it may be. If you like travel, book a vacation. Cash? Redeem your points for cash back. Granted, the undertones of the commercial and the American Express Membership Rewards program is far more complex, but the premise is still the same: earn points for qualified purchases and buy the things you want with them.
When searching for a points card, you're going to notice that some come with annual fees and shorter intro terms, if they even exist. There are several reasons for this and you shouldn't dismiss these types of offers immediately because at first glance they seem like they are a bad deal. In fact, they are just the opposite. However, much of this relies on how you use your card and how much you spend.
Are Points Credit Cards without 0% Intro Rates a Good Deal?
If you carry a balance on a points credit card and it doesn't come with a 0% introductory APR it's highly likely that the interest that accrues on your balance in most cases will negate any type of benefit that your points earning will provide -- unless you are paying off a vast majority of your balance every month and leaving just a small amount to carry over. To actually earn with your card when it comes to points programs, you have to discipline yourself to use it only for purchases that you would normally spend cash for and pay off those purchases entirely before interest starts kicking in. So the answer to the question is that points credit cards are a good fit only for consumers who don't carry balances. Those who want a rewards card and plan on carrying a balance should take a look at cash back offers as they have 0% introductory rates.
Are Points Rewards Cards with Annual Fees a Good Deal?
You'll also notice that points cards typically will come with annual fees. For revolving balance or credit cards, these are usually in place when the card does have a 0% intro rate. WIth charge cards, the annual fee exists as that helps the issuer make money as they don't collect interest. The answer to the question is that it really depends on how much you spend on the card. Points cards work out for the most part where every 1000 points is the equivalent of $10. So, when deciding whether a card is worth it, you need to take a look at your spending habits and the structure of the card and ask yourself if you can earn enough to make it profitable. If the card has a $100 annual fee, the break even point is 10,000 points.
Based on the Above Analysis, Why Would Anyone Get a Points Card?
The reason is simple. There isn't a set earnings to value on purchase ratio of points to dollars. What does this mean? It means that even though each point is worth $.01, it doesn't mean that each dollar spent translates into one point. Plus, there are several different promotions and bonuses where you can earn tons of points. If you browse through the offers above you'll see that there are several offers that provide bonuses of up to 50k bonus points -- which translates into a $500 value. Additionally, you'll see based on the descriptions that some purchases provide different structures; some purchases will give you 3 points for every dollar spend, etc. This is common with points cards and are one of the reasons why savvy consumers really benefit from their use. In addition to providing a flexible rewards program, when used efficiently they can be more lucrative than even cash back deals.
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