Reward Credit Cards –Things to Look For and Things to Avoid
A few years back, Frequent Flier Miles Cards are the only type of reward credit cards offered in the market. Today, there are many different types of rewards programs to suit every cardholder’s lifestyle.
If you are planning to get a credit card with rewards, what are the things you should look for and what things should you avoid?
What to Look For
A reward program that complements your lifestyle. If you don’t travel much, you can choose a gas reward credit card or a cash back reward gas reward credit card to match your spending style. This way, you can earn points without going beyond your means.
A low rate of interest. Credit cards with reward programs are expected to have higher interest rates than non-reward cards. However, you should still be careful with your choice and choose one with a reasonable APR.
Sufficient grace period. A credit card with a reasonable length of grace period protects you from the risk of bad credit and uncontrolled debt. Find a rewards credit card that offers at least 25 to 30 days of grace period.
Great introductory offer. Look for a credit card with a good introductory offer to match with its rewards program. For instance, you can find zero APR cards with rewards where you can enjoy zero interest for 6 to 12 months.
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What to Avoid
Blackout dates. A rewards credit card with blackout dates is a huge disadvantage because you can end up losing all your hard-earned points if you fail to gather enough points or redeem your rewards on time.
Limitations. Credit card companies may impose a limit on the value of rewards that you can earn. Thus, even if you still use the card for purchases, you will stop earning points once you have reached the maximum number of points allowed in a year or for the life the card.
Penalties. Carefully read the fine print and see if one late payment will not disqualify you from redeeming your rewards. Most reward credit card issuers will forfeit your chance of getting rewarded due to consecutive late payments.
Forfeiture. If you can’t carry over your collected points for the next year, it’s best to find another credit card that allows you to. This way, you can be sure that you will be rewarded once you have reached the minimum number of points required for the reward.
Expensive annual fees. Rewards credit cards may impose annual fees that can range from $30 to $80 or even more. Before signing up, ask yourself, “Is this card really worth paying $80 a year to keep it active?” “Will the value of rewards you earn exceed the cost of annual fees?”
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Ann Wilson is the head writer of Reward Credit Card Site. This resource provides consumers with valuable reviews and information on the best credit card reward programs. Its main objective is to help people to take advantage of credit card rewards and start earning reward points. Copyright © 2008