4 Things to Consider Before You Get a New Rewards Credit Card

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Thinking of getting a credit card that earns rewards? Here are some card features you should research before you apply for a new rewards card. [[{“value”:”

Many people use rewards credit cards for everyday spending. If you only use your credit cards to charge what you can afford, this can be a smart money move. It can also feel exciting to earn rewards when you pay for everyday expenses.

But how rewards credit cards function can differ from one card to another. Before adding a new rewards credit card to your wallet, you should ensure it fits your needs and goals. Here’s what to consider before you get a new rewards credit card.

1. How the card earns rewards

Not every card earns rewards in the same way. Some cards offer flat-rate rewards on every purchase, meaning no matter what you buy, you earn rewards at the same rate.

Other cards have bonus categories. When you spend in those categories, you earn at a higher rate. Meanwhile, when spending outside of those categories, you earn rewards at a lower rate.

Understanding how a credit card earns rewards is a must. Some people use multiple rewards credit cards because they want to maximize the rewards they earn on typical spending. If you do this, consider which card is best to use when paying for your everyday purchases.

2. Redemption options

You’ll want to plan how to redeem your rewards once you earn them. It’s wise to research the redemption options before applying for a new credit card. You want to know whether you can get cash back, a statement credit, or use your points or miles for travel.

Some redemption choices may provide more value, so strategizing how to redeem your rewards can help you stretch your credit card rewards.

3. Welcome offer rules and restrictions

Many credit card issuers promote attractive welcome offers available to new cardholders. If you qualify for the offer and meet the minimum spending requirements, you could walk away with a sizable stash of points, miles, or cash rewards.

However, only some people are eligible for these offers. Some credit cards have more restrictions, such as allowing customers to receive a welcome offer for a specific card only once in their lifetime.

Others may restrict customers from being eligible for a particular card’s welcome offer once every few years. It’s best to research these details before applying for a card to know what to expect. You should also make sure you can comfortably afford to meet the minimum spend.

4. Fees

Finally, pay attention to all the fees associated with the card you’re considering. Many rewards cards and cash back credit cards with premium perks have an annual fee. You should only get a credit card like this if you can afford the yearly fee (and ideally, earn more than enough rewards to make it worthwhile).

If you’re on a tight budget, there are no annual fee rewards cards. It’s also wise to review all other fees, like the APR, late payment, and foreign transaction fees. You can avoid being charged credit card interest by paying your entire statement balance every month.

Choose your ideal rewards credit card

There are many rewards credit cards on the market. But not every card will be right for you. Take your time comparing rewards credit card options and look into the features mentioned above so you can apply for your ideal credit card.

For a closer look at some of the top rewards card recommendations, review our list of the best rewards credit cards.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More