There are many credit cards with rewards in the market and all of them seemingly offer attractive deals. Nevertheless, not all reward credit cards advertised are truly rewarding. If you do not pick the right card, you could end up spending more on the rates and fees instead of enjoying rewards and privileges.
How can you distinguish a truly rewarding credit card? Check out the following tips:
1. Choose the right type of reward. If the reward program does not suit your lifestyle, you will find it difficult to get rewarded. For example, choosing a credit card with airline miles reward may not be practical if you do not travel abroad. In the same way, you should only get a credit card with gas rewards if you drive your own car.
Yes, choosing the right type of reward is essential to benefit from what the credit card has to offer. Before comparing reward credit cards, you should first think about your personal spending style and needs and decide which reward program matches.
2. Evaluate the rules of the reward program. You should read and understand the specific rules on how you can earn points and redeem points. Some reward card may implement complicated reward systems which can be difficult to follow. A simple reward system is great especially if this is your first time to acquire a reward credit card.
3. Choose a rewards card with minimal fees. Most reward credit cards carry higher APR than non-rewards cards so you should compare and choose the one with the most reasonable interest rate. Look for a reward credit card that does not carry an annual fee so you don’t have to pay a yearly cost.
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Check out the late fees, over-the-limit fees, and other penalty charges. If the reward credit card offers an introductory rate, find out how long the low rate will last and what the regular APR would be.
4. Compare rewards credit cards online. Comparing reward credit cards online will make your search quick and convenient. Look for a reliable website that offers credit card reviews or comparison table.
Typically, the credit cards in these websites have been arranged according to categories so you don’t have to waste time looking at credit cards that do not match your preference. For example, if you have decided that you want a cash back credit card, you can choose the cash back category and compare all available cash back credit cards in the market.
5. Read the complete fine print. After looking for potential reward credit cards online, pick out your top three credit cards and be prepared to do further evaluation. This time, you should read and understand the Terms and Conditions of each card.
Do not select a credit card based on what the advertisements tell you since marketing ads can be misleading. You may have read a review about the credit card online but these reviews are meant to give you an idea about what the credit card offers. However, reviews generally do not give all the information you need to know, particularly the specific conditions and disclosures associated with the card.