Clark Howard's Tips

Check out credit card rewards

November 5, 2004

Do you have a credit card that gives you bonuses?

There are some amazing things coming in the credit card business over the next 24 months for people who pay their credit cards in full. People are applying for cash reward cards because they offer such good deals. And now more people will be able to acquire American Express cards more easily.

CLARK'S TIP TOPICS Consumer Tips Managing Money Banks & Credit Cards Technology Health & Healthcare Car Costs Homes Phones & Utilities Small Business Travel & Leisure Find more consumer advice in Clark Howard's book, "Get Clark Smart"

To give some background, banks previously haven't had a choice about which credit card they can offer you. It's been either Visa or MasterCard.

But now, because of an anti-trust case headed for the Supreme Court, Amex is about to break the Visa/MasterCard monopoly. So if you pay your bills in full every month, you will hit the sweet spot with credit card offers.

Visa is in such fear of Amex that the company is promoting a premium program known as the "Signature Program" that competes with some of Amex's premiere programs.

So over the next year, open up the credit card offers coming in the mail. They could be worth it. Clark prefers the cash reward cards, which offer you between 1 and 1.5 percent cash back on your purchases.

If you are able to redeem airline rewards often, you are better off with airline cards. But you have to be flexible because airlines have so many rules with those deals. With cash, there are no rules.

If you're not getting anything in return and you pay your bills in full, you are losing out. You could be making easy money.

More Clark Howard Credit and Banking Tips The dangers of home-equity borrowing  ID checks, minimum purchase rules a no-no with credit cards  The Mortgage Lender Implode-O-Meter  Advance-fee loans are back with a vengeance  Wachovia, WaMu say goodbye to option payment loans  Cycling your unused credit cards back into the mix  Banks offer diverging interest rates on savings and CDs  Mortgage bailout proposal to help banks, not homeowners  Credit limits being reduced without your knowledge?!  65 million paying for credit monitoring/fraud alert services  Full list