College Credit Card Reward Programs
by: Charles O'Ryan

Within the last several years, credit card companies have tried very hard to keep your business. There are literally hundreds of different credit cards to choose from and even more rewards packages that the card can come equipped with. If you have a decent credit score, limited debt, and the means to pay your monthly payments, you should do a little shopping around for the benefits that will work the best for you.

Deciding which rewards that make the most sense for you is not a difficult choice by any stretch, but it should be a decision that has several influences. The first and foremost important aspect of any card is its rate. Having a free airline ticket each year would be great, but would not make any sense if your card is charging you an extra several hundred dollars a month because of high percentage rates. You should also keep in mind the reality of reaching the point of receiving an award. Some of the more prestigious cards offer a yearly reward catalog with hundreds of options for things you spend your reward points on. When applying for a credit card you may see that you can earn a trip to Disney Land or a Plasma TV, but upon further inspection you will notice that these rewards cost hundreds of thousands of points, which would mean thousands and thousands of dollars spent on your behalf. This type of expectation for rewards would be even more unrealistic if your income is anywhere near the national average of $20,000 a year or if you are a college student where a large pizza and movie ticket is considered a big weekend purchase. That being said, not all rewards are unrealistic and it is up to you to make a decision that will benefit you the most.

If you travel frequently and purchase several airline tickets a year, an obvious choice may be a credit card with a frequent flier miles reward program where you can choose the airline carrier with which your reward points go to. If you are a tight spender and wouldn’t mind squeezing out every dime you can get, a cash back rewards program may the program for you. Many cash back reward programs will offer from 1-5% cash back. This may be the most accessible and used credit card reward program, and it does not have any drawbacks.

Although credit card rewards are enticing and helpful, some only last for so long. Many credit card companies will use reward programs as a temporary means to attract customers to their card and not someone else’s. Every several months it would be wise to look at every credit card you have and reevaluate the rates and contract to ensure that you are getting the best card you can. Rates are constantly changing among the industry and it is always worth a second look to make sure you are getting them. Rewards are helpful and can make your wallet stretch a little further, but it should not be a reason to start unhealthy and undisciplined spending habits and get you into debt.