Or Do You Just Use Your Credit Card For Shopping And Groceries

Category: Finance, Credit.

In the past, reward credit cards were limited to cards with Frequent Flyer Miles Programs.

With this in mind, it is obvious that not all reward credit cards genuinely bring rewards to its users. Today, as credit card holders continue to grow and as the competition among credit card companies grows even stronger, the emergence of rewards credit cards is undoubtedly an effective marketing strategy in attracting clients. Therefore, it is your, as a consumer responsibility to be aware of reward credit cards that offer great deals and those that do not. Features to Look For. In this article, let s discuss the features you should look for and the things you should avoid in a reward credit card. The Right Kind of Reward. Are you a frequent traveler?

What particular reward program can you benefit most from? Do you drive a lot and spend a lot in gas? Whether you choose a Frequent Flier Credit Card, a Gas Reward Credit Card, or a reward credit card with Cash Back- what matters is that it matches your spending habits and your lifestyle. Or do you just use your credit card for shopping and groceries? Reasonable interest rates. Yes, you can avoid the interest rate by paying your balance in full each month but you can t always guarantee that you won t need to carry your balance over for the next billing cycle.

Obviously, you ll want a reward credit card with a reasonable APR. The interest rates alone can kill the value of your rewards. Reasonable fees or no fees at all. Always be on the safe side by choosing a reward credit card with low APR. Aside from a low APR, check out the other credit card fees such as the annual fee, etc, late fees. Clearly, you can get more from your credit card if you won t have to worry about additional fees from time to time.

Some reward credit cards with good APR have no annual fees at all. Things to Avoid. A reward credit card may limit your rewards to only a maximum value. Reward limits. For instance, you can earn points but as soon as you reach$ 5, 000 value, that s when you stop qualifying for the rewards. Blackout dates.

You ll want to stick with reward credit card that will last you a long time and not just for short period. Blackout dates often defeat your purpose of getting a reward credit card. You need to make sure you are aware of the blackout dates so you can properly plan your vacation. Some reward credit card companies will not allow you to use your points at high travel times such as Christmas& Thanksgiving. Forfeit your rewards. For instance, you may strive to rack up your points for the whole year to get your travel reward.

Restrictions are always part of the deal. But if you fail to earn enough mile points, would you be able to carry over your collected points for the next year? Also, the timeliness of your payments is a major factor in getting your rewards. Or will all the points you earned be forfeited and you ll have to start from zero all over again? If you delay a single payment, you may be disqualified from the rewards program. Make sure that you clearly understand your reward credit card s terms and conditions on collecting and redeeming rewards.