Reward credit cards are meant to give you incentives or
bonuses for being a loyal credit card holder. However,
despite what the advertising says, not all reward credit
cards live up to its name. In fact, some reward credit
cards may even cost you more than actually save you any
money. So how do you spot a non-rewarding credit card? Let
this article be your guide in choosing the right reward
credit card for you.
Shopping for the Right Reward Card
Today, doing research on credit cards is made easier by
finding and utilizing credit card review websites. Here,
you can find that credit cards are categorized according to
their type and purpose. When you look at the list of reward
credit cards, you'll see that it is further arranged
according to the type of reward it offers. It is a good
idea to decide first the type of reward program you need.
For instance, would you like to get a Travel reward credit
card, a gas reward credit card, or a cash back reward
credit card? Are you looking for a business reward credit
card? Consider your needs and your spending habits so you
can make the right decision on which reward program best
matches your lifestyle.
After deciding the type of reward you want, you can see a
couple of credit cards offering that particular reward
program. This is the time to check on the reviews for each
so you can have an idea on which reward credit cards are
worth checking out. Remember, reviews often give you the
best and weakest features of each credit card, but not the
entire terms. Although credit card review sites don't
usually include the disclosure statements of each card, the
links to the official websites of the credit cards are
included after each review. After you've chosen your
prospective reward credit cards, go ahead and visit the
credit cards website to read the Terms and Conditions in
full. It may take time for you to read each of the reward
credit card's agreement form but it's definitely worth the
effort. As you read the fine print, you can compare one
reward credit card from the other more accurately.
Features of a Non-rewarding credit card:
Don't forget to heed the signs so you don't have to get
stuck with a reward credit card that doesn't work for you
at all. Here are the signs that a reward credit card may
not be as rewarding as it promises to be.
Expensive annual fees. Some reward credit cards charge from
$50 to as much as $100 in the annual fee alone. Think about
it. How much value of rewards do you expect to earn from
your reward credit card? Is it worth paying $100 a year
just to get the rewards? If the reward you can earn in a
year amounts to only $50, then the annual fee defeats your
purpose of getting the reward credit card in the first
place.
Blackout dates. Blackout dates or expiration dates can cost
you to lose all the hard-earned points in your account.
Some reward credit cards impose a 2 year or a 1 year
blackout which means your points are only good to last for
2 years or 1 year. If you fail $to earn enough points
during this period, all the points you've collected will be
forfeited. Thus, it's best to find a reward credit card
that doesn't impose blackout dates at all.
Reward Limits. Some reward credit cards impose a limit on
the maximum amount of rewards you can earn. For instance,
your reward credit card may allow only up to $5,000 value
of rewards. Afterwards, you won't be qualified for the
reward points any longer.
High interest rates. Some reward credit cards have higher
interest rates than non-reward cards. Nevertheless, if you
do your search diligently, you can find ones with a
reasonable rate of interest.
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Ann Wilson is the head writer of RewardCreditCardSite.com.
This resource provides consumers with valuable reviews and
information on the best credit card reward programs. Its
main objective is to help people to take advantage of
credit card rewards and start earning reward points. Visit
http://www.rewardcreditcardsite.com for more info.
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