Why do you need a Credit Card with Rewards?
Are you thinking about applying for a credit card with a rewards program? If so, you probably have a good reason for wanting to do this. Before we go any further, remember this: you do not need a credit card with rewards. It may be something you are looking for, but there are many cards out there that do not offer this.
The number one reason to apply for a credit card with rewards is that you get something in return for the money you spend. For instance, some cards give you one point for every dollar you spend. After you reach a certain level, such as 7,500 points, you can begin to cash them in for everything from home goods to travel and much more. Some people like to know that they are at least getting points when they use their card – this makes spending easier on them.
Some reward credit cards still offer everything else you could be looking for. You don’t want to choose a rewards card just for the points but forget about all the other important details. Instead, keep things such as your limit and APR in mind. After all, your rewards will not do much for you if you are stuck with an APR of 20 percent or more.
All in all, you do not need a credit card with rewards. You may want one of these cards, but it is far from something that you need to have. Before you make a final decision, compare rewards cards against others to see what will work best for you.
October 15th, 2009 at 4:29 pm
It’s easy to choose rewards cards because you’re excited about getting “free” stuff.
Annual fees and high APRs can very quickly drain your wallet. Also, sometimes getting your rewards isn’t as easy as it sounds at first. Read the fine print so you know what sort of red tape will be involved when you redeem. Watch for blackout dates, shipping or ticketing fees and annual caps on what you may earn.
Don’t forget to check out debit card rewards programs as well since you won’t have to worry about going into debt to earn something fun.
www.perkstreet.com