With the competition among credit card companies growing tougher by the minute, bigger and more exciting rewards are offered to cardholders. When managed correctly, reward credit cards can indeed be very rewarding. However, making the wrong choice and credit mismanagement can prove to be risky. In this article, let us discuss the common pitfalls that reward credit cardholders must avoid:

Excessive Interest Rates. Credit cards with rewards are expected to have higher APR than non-rewards cards. While non-rewards cards have an average of 3% to 8% APR, the interest rates on rewards cards in the market can range from 15% to 20%, depending on the issuer.

Continue reading »