CREDIT CARD RATINGS

2008 EDITORS CHOICE - BEST STUDENT CREDIT CARDS Best Student Card to Build / Re-Build Credit HSBC Orchard Bank Platinum MasterCard® [Read Review] Best Student PLATINUM Credit Card Bank of America® Student Platinum Plus® Visa [Read Review] Best Student CASH BACK Credit Card Capital One® No Hassle Cash(SM) Rewards for Students [Read Review] Best Student GAS Credit Card Discover® Open Road(SM) Card for Students [Read Review] Best Student REWARDS Credit Card Chase +1(SM) Student MasterCard® [Read Review] Best Student PERSONALIZED Credit Card Discover® Student Card - Monogram Collection [Read Review]

Cash Back Credit Card vs. Reward Credit Card Programs

Earning money without doing any real work or receiving a gift without an occasion sounds exciting and unbelievable. Cash back and reward points are just that. Both sound similar and are usually clubbed together by most credit card companies and banks. However there is difference in the manner you earn and how you use the earned points. Which type of earnings suits your needs, cash back or reward credit card programs? This would depend on patience while handling reward points against real cash. Preference for redeeming points for merchandise will have you checking regularly during the year against cash back.

Cash back reward programs are simple and direct as you receive real hard cash on using your credit card. This program pays you actual cash or gives a percentage discount on the money you have spent on your credit card. The downside being that, while you don’t have to monitor your points or miles awarded to you, you get less value in the cash back program.

Besides cash back credit card programs there are reward credit card programs where you are awarded points on the purchases you make. Generally you get one point for every dollar spent on your card. Here the credit card companies have the upper hand since they get to choose and price the merchandise that you get by redeeming the points. Another bother is that you have to keep track of the award points, when to redeem them and for what. The bright side is that it is something you get free and have earned it on the loyal use of your credit card.

There are some reward credit cards that do not award points but give definite currency or merchandise. Some banks in partnership with gasoline retailers use gasoline reward cards to earn points on the credit card on purchase of gasoline. These points when earned are accumulated in a points bank and used as a credit on purchase of gasoline in the future. A popular example is the Discover Gas Card. If your usage of gasoline is high per month this deal is advantageous as you get some amount free on using your card regularly for purchasing gas. The programs that give you hard cash back or a gift have a debt reduction benefit that this program doesn’t.

These programs are all ‘make you feel good’ programs as you get paid hundreds of dollars free of charge. Cash back credit card programs and Reward credit card programs do not make you rich but they do bring a smile on your face especially compared to being in debt and paying interest.

2008 EDITORS CHOICE - BEST STUDENT CREDIT CARDS Best Student Card to Build / Re-Build Credit HSBC Orchard Bank Platinum MasterCard® [Read Review] Best Student PLATINUM Credit Card Bank of America® Student Platinum Plus® Visa [Read Review] Best Student CASH BACK Credit Card Capital One® No Hassle Cash(SM) Rewards for Students [Read Review] Best Student GAS Credit Card Discover® Open Road(SM) Card for Students [Read Review] Best Student REWARDS Credit Card Chase +1(SM) Student MasterCard® [Read Review] Best Student PERSONALIZED Credit Card Discover® Student Card - Monogram Collection [Read Review]