trapez-finance.org >> Are the Rewards My Credit Card Company is Offering Really Any Good?

This is a good question.  Nowadays, it seems almost every credit card comes with some sort of rewards program.  Are these some sort of bribe?  Do I wind up paying for it later somehow?  These are more good questions.  Let’s consider some answers.

Travel rewards are usually in the form of redeemable points.  You can cash in your points for airfare, accommodations, automobile rentals, and more.  The most well known of these redeemable travel points, are frequent flyer miles.  You are rewarded points based upon your spending and, often, your first few purchases earn you bonus points.

Cash back rewards are also predicated on how much you spend and how fast you spend.  These are simply rebates offered you on purchases.  These cards usually reflect a high rate of interest against the outstanding benefits.  This pretty much nullifies the rebates.

Gas station rewards are used to encourage customer preference.  You might use this card more often if you’re carrying it around because you want to have it handy when you are low on gas.

The offer is usually a gas purchase discount or even gas for free.

College rewards cards fix a percentage of purchases.  This fixed amount is applied toward savings for your children’s college education.  These rewards can prove helpful if you have children who will one day attend college.

Entertainment rewards feature things like music downloads, theatre and concert tickets, and even backstage passes.  You should be certain that the rewards offered complement your interests.

Credit card companies are in business to make a maximum profit, therefore any special deal they offer may be questionable.  It is solely up to you to research the rewards and bonus aspects of your credit card.  Don’t sign up on impulse alone.  Be certain the credit card company is offering something compatible to your interests.  Be aware that these offers are usually only good for people with good credit.  Be wary of interest rate changes that apply to your rewards or bonus program.  Be careful of membership fees.

Your spending habits will often influence the bonus or rewards program in that you may need to spend more than what you might normally in order to participate in these programs.  Find what is best suited to your good spending habits.  Don’t change your good spending habits just to participate in the rewards or bonus program.

Often fees are attached in the form of interest on outstanding balances.  So, if you pay off your outstanding balance and don’t carry it forward, some of these offers may actually benefit you.  However, if you often carry your balance forward or pay only minimums, the rewards may become too costly to be of any advantage.

Credit card companies offer attractive reward programs to attract more customers. But then there is a fine print. All rewards look good, but what is best for you? Which one suits your lifestyle?  Chintamani Abhyankar offers useful tips to pick correct rewards program.

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