Westworld Alberta
Issue link: http://westworldmagazine.ama.ab.ca/i/40418
analyze this Give Us Credit How to get the most out of your plastic by Sonu Purhar W hen you opened your mailbox this morning, chances are it contained a credit card offer or two. It seems that new cards and types of rewards are everywhere, with each issuer trying to outshine the competition with special offers. Travel miles! Cash back! No interest for three months! Loyalty rewards! Read on for a list of common card fea- tures and what you need to know to get the best deal for the way you spend. CARD FEATURE: Reward Points The basics Credit card reward programs allow you to accumulate points toward merchandise, fl ights and other goodies — or even earn cash back — as you spend. Take a look at any bank web- site and you'll see how wide- ranging these rewards can be. For example, one bank's travel reward card has no annual fee and gives one reward mile for every $20 purchase, while the "gold" version of the same card costs $99 per year, gives one reward mile for every $15 and includes bonus features such as fl ight discounts and travel insurance. Just beware: the real-world value of reward points varies. Under some plans, you need an exorbitant number of points to earn something as small as a toaster, never mind a fl ight to Cancun. And sometimes it can be diffi cult to redeem airline miles due to restrictions and blackout dates. The bottom line Do some reading and choose a card that offers the most real-world 46 WESTWORLD >> SEPTEMBER 2011 rewards for the way you spend. Be aware of any limita- tions on the points you collect and don't fall into the trap of making large purchases purely to collect rewards. Would it be cheaper to buy that fl ight yourself instead of spending enough to earn it? CARD FEATURE: Annual Fees The basics Some cards require users to pay an annual fee in exchange for extra perks such as car rental insurance and enhanced reward programs. One bank's credit card costs $120 per year, but cardholders receive 15,000 travel reward miles with their fi rst purchase — enough for one economy- class, short-haul fl ight. Another card costs a hefty $450 annually, but that includes a cornucopia of ben- efi ts, such as one reward point for every dollar spent and access to private events. The bottom line Make sure the card's perks warrant the annual fees.