Look for program with the high points-to-dollar ratio

You should always remember that not all rewards cards are created equal. So how do credit card points really work? For most rewards credit cards, each dollar of spend earns one rewards point, but it can be more or less – a different card might provide one rewards point for every $1.25 spent on the card, even one from the same provider.

As an example, let’s take a look at two American Express rewards cards:

One card earns one Amex rewards point for every eligible $ spent

Another earns two Amex rewards points for every eligible $ spent

Bear in mind that it’s more likely that a card with a greater points-per-dollar ratio will carry a higher annual fee and a higher interest rate.