Rewards Credit Cards - Choose Smartly

Rewards credit cards sound so "rewarding", don't they

? But what are they, exactly - and does it really pay to have one?

Well, this card is geared towards those people who use it like cash - instead of cash - to pay for almost everything under the sun. They use it for groceries, trips to the dentist and even book their nose jobs with it.

And boy, don't the card companies reel you in with what you could be rewarded with! Potential customers are teased with visions of cash rebates, extra travel points, and huge discounts on goods and services they normally wouldn't be able to afford. And, a person's incentive to pay his balance down each month, is the promise of those huge piles of "thank you" gems that grow bigger with every purchase he makes.

However, potential members should be careful, and read the fine print on each and every one of the member agreements. It's easy to suddenly find the new card carries higher than average fees - which not only affects a person's "rewards pile", but also his wallet - especially if he doesn't have the money to pay his balance off every month.

And sometimes, a person does everything right in regards to his reward requirements, and one day goes to cash out the points he's earned - only to find out that it's not going to happen anytime soon for him. In most cases, this situation occurs when he impulsively signed up for his card - and missed the important paragraph that would have clearly shown him a certain "reward redemption loop hole", established by the company FOR the company, that makes it darned near impossible for any member to ever redeem his points - no matter how stellar his purchase and payment history.

So, now that you're well educated on the finer points of the "thank you" program, do you think that you're someone who could handle a card like this responsibly? Or are you the type who is so prone to self-destruction, that just to see an ad for this kind of card would be all it would take for you to start your downhill run? Well, don't stop reading now:

It's probably OK to get this card if you are the type who's very responsible with everything - especially with money. And, if you're actually into reading the fine print of every contract and agreement for anything you've ever had, or were thinking of getting - then you're probably not in danger of having the wool pulled over your eyes. And, even better - if you're known for leaving no stone unturned to get what was promised you in whatever situation - and you have the time and patience to hang out on the phone for hours, while being transferred between 15 different customer service representatives - none of whom can help you - then you're probably the ONLY type of person who should ever hold this card to begin with.

On the other hand, if you're more like the rest of world - or are a free-spirit type in any form - paying off a credit card balance in full every month, probably isn't at the top of your "daily obsession list", and you should most likely look for another type of card that will better fit your lifestyle.

So, when you're shopping around for credit cards, be careful of the ones with the "rewards" programs. Know yourself well enough as to how responsible you are with money. You don't want to end up with a huge accrual of "punishment points" as a company's way of saying "thanks for being our customer".

by: Steven Wilton

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