With so many rewards credit cards to choose from, the task of choosing a reward credit card can become overwhelming. If you plan to apply for a reward credit card, consider these tips on how you can compare credit cards better:
1. Consider the type of rewards. Because reward credit cards offer varying reward programs, always carefully consider if the rewards complement your lifestyle and spending. It’s easy to get enticed with attractive rewards but if the rules of the program do not match with your lifestyle, you may find it difficult to get rewarded.
2. Understand what “up to” means. Some credit cards offer bigger points that are conditional. For example, one reward credit card may offer rebates of “up to” 5% per purchase. Does that mean you get the 5% rebate on all your purchases? Obviously, not. The term “up to” implies that you can earn the maximum rebates only on qualifying purchases.
3. How long will the good offer last? Some reward credit cards may offer a low interest rate or bigger rewards for a limited time period. But after three or six months, you may find yourself stuck with a high rate card with very few reward opportunities. Thus, before signing up, make sure that you look beyond promotional offers.
4. Read the fine print. Whether you are applying for a reward credit card or a regular credit card, it is very important to know what is written in fine print. Keep in mind that the only way you can compare credit cards accurately is by evaluating the complete Terms and Conditions.
5. Look in the right category. Don’t waste your time comparing credit cards with different reward programs. Doing so may confuse you even more. Instead, carefully consider what type of reward credit card you need and compare credit cards under that category. This will not only enable you to save time, it will also allow you to evaluate each credit card more closely.
6. Consider the credit requirement. Most credit cards with rewards strictly require good to excellent credit. If you have an average credit score, your options may be limited. On the other hand, if you have bad credit, then not only will your application get declined, your score may also suffer. Before sending application to your chosen issuer, don’t forget to check if your credit rating qualifies.