Rewards Credit Card

From merchandise and cash back to travel incentives and charitable contributions

, a rewards credit card provides cardholders with an added benefit in exchange for their spending. While the rewards can be attractive, there are a few caveats to consider:

Spend wisely Never make purchases with the sole intent of earning rewards points. If for some reason you are not able to pay your balance in full at the end of the month, the value of the earned points will be more than offset by the amount of interest youll have to pay. Paying $20 in interest to earn a $5 incentive is not a reward.

Avoid excess fees When comparing rewards cards, be sure to closely examine any associated fees. High annual fees, over limit penalties, or late payment fees could more than wipe out the value of any rewards earned.

Know the value of a point For most rewards credit card issuers, one dollar equals one point. However, to make a savvy comparison, you must dig deeper and determine the actual dollar value of each point earned. For example, one issuer may dictate that the dollar value of one point is equivalent to 50 cents, while another may determine that a point is worth only 5 cents.

Be mindful of limitations Be sure to investigate point caps and expiration limitations. If youre a big spender, opt for a rewards card that will provide your full entitlement. If you tend to spend more conservatively, choose a card that will allow you to save up your points for a bigger reward.

Understand the redemption process Typical rewards include travel and air miles, discounts for retail goods, cash back incentives, and charitable contributions. Be sure to select a rewards program that makes it easy to redeem purchases of goods and services you would otherwise buy with cash.

Read the fine print As with any Aussie credit card, its essential that you understand the stipulations associated with your rewards program. Be mindful of the cards interest rate, associated fees, and reward structure. Also investigate any potential penalties, such as forfeiture of points for late payments, black out travel dates, point caps, and expiry.

Selecting a rewards credit card can be a daunting task, but the payoff can be big if you research and choose wisely. With todays simple and secure online applications, theres no need to wait for your first reward.

by: John Matthew

POST COMMENT

Credit Cards For Bad Credit: -meet Your Varied Needs The Way To Locate The Best Prepaid Credit Card Same Day Loans No Credit Check-Get money without any credit check No Credit Check Payday Loans: Financial Assistance To Overcome Short Term Uncertain Expenses Bad Credit Payday Loans - No Need to Arrange the Papers Now Payday loans no credit check-Get easy funds to meet small crisis Finding Personal Loans For Bad Credit No Credit Check Loans– Don't Be Anxious About Bad Credit Financial debt Agreement – How Did The Credit card debt Issue Take place? Credit card debt Settlement deal – Is Credit card debt Relief Assist Actually Beneficial Credit card debt Settlement deal – Are Free Consolidation Packages Available Credit Report – the Gateway to Information about Your Finances Payday loans for bad credit-For the ones with bad credit status