Understanding Rewards Credit Cards
A credit card is no longer “just a credit card.” Choosing a credit card today requires a person to look at one’s lifestyle. At one time, the card was simply used to purchase everyday items, like food and gas. Rewards credit cards are like opening a Pandora’s Box. You are inundated with TV ads in your living room, radio ads in your car, and pop-up ads on your computer.
They all have some type of bate on the hook to get you to sign up. The type of rewards offered is as varied as any supermarket. Do you use air travel a lot? They have a bonus and rewards for air miles. If you drive your automobile a lot, they have rewards, or cash back, based upon the fuel you purchase. Still others have rewards based upon the total dollar amount that you spend during a particular period. A single bank may offer a variety of rewards credit cards appealing to just about every whim you may have.
Know What You’re Paying For
With all these benefits, why wait? Well, as they sometimes say, the devil is in the details. Today’s rewards credit cards are the equal of yesterday’s insurance policies, pages of very fine print.
A rewards card may have wonderful benefits, but also numerous fees and charges. If, for some reason, you do not qualify for the rewards, you may still be responsible for the fees and charges.
Another rewards card may seem to have fewer rewards, but have few fees. Make sure that you are completely aware of any and all restrictions of your rewards card. After all, what good are air miles if you cannot fly on holidays, or have few seats available. Will your gas purchase rewards disappear if you trade your big SUV for an all-electric car?
Your Rewards Card Should Match Your Lifestyle
Before you begin to collect rewards credit cards, look at your lifestyle to see if you will be using the card in a manner that will bring you rewards. Some cards will waive the monthly fees if you arrange for direct deposit. Others may do the same if you keep a minimum balance in the account. Some rewards card ads may even make a joke out of always paying the balance in full each month, just so you may get the double rewards. That is like going to a casino, knowing that you will eventually lose, and you gladly pay for the privilege.
In today’s fast-paced world, rewards credit cards, are available, and are very useful if used in a thoughtful and prudent manner. With all the talk about bullying at school and work, do not let some slick talking salesperson bully you into a rewards card that you do not need.
More great credit card articles on NottaLotta®
- Negotiate a Lower Credit Card Interest Rate In 5 Simple Steps
- I’m get a bunch of points this month!
- Southwest Credit Card Member Perks
- Winning the Credit Card Game