What To Look For And What To Avoid in Rewards Credit Card

What To Look For And What To Avoid in Rewards Credit Card
In the past, reward credit cards were limited to cards with
Frequent Flyer Miles Programs. Today, as credit card
holders continue to grow and as the competition among
credit card companies grows even stronger, the emergence of
rewards credit cards is undoubtedly an effective marketing
strategy in attracting clients.

With this in mind, it is obvious that not all reward credit
cards genuinely bring rewards to its users. Therefore, as a
consumer, it is your responsibility to be aware of reward
credit cards that offer great deals and those that do not.
In this article, let's discuss the features you should look
for and the things you should avoid in a reward credit card.

Features to Look For

The Right Kind of Reward. What particular reward program
can you benefit most from? Are you a frequent traveler? Do
you drive a lot and spend a lot in gas? Or do you just use
your credit card for shopping and groceries? Whether you
choose a Frequent Flier Credit Card, a Gas Reward Credit
Card, or a reward credit card with Cash Back- what matters
is that it matches your spending habits and your lifestyle.

Reasonable interest rates. Obviously, you'll want a reward
credit card with a reasonable APR. Yes, you can avoid the
interest rate by paying your balance in full each month but
you can't always guarantee that you won't need to carry
your balance over for the next billing cycle. The interest
rates alone can kill the value of your rewards. Always be
on the safe side by choosing a reward credit card with low
APR.

Reasonable fees or no fees at all. Aside from a low APR,
check out the other credit card fees such as the annual
fee, late fees, etc. Some reward credit cards with good APR
have no annual fees at all. Clearly, you can get more from
your credit card if you won't have to worry about
additional fees from time to time.

Things to Avoid

Reward limits. A reward credit card may limit your rewards
to only a maximum value. For instance, you can earn points
but as soon as you reach $5,000 value, that's when you stop
qualifying for the rewards. You'll want to stick with
reward credit card that will last you a long time and not
just for short period.

Blackout dates. Blackout dates often defeat your purpose of
getting a reward credit card. Some reward credit card
companies will not allow you to use your points at high
travel times such as Christmas & Thanksgiving. You need to
make sure you are aware of the blackout dates so you can
properly plan your vacation.

Forfeit your rewards. Restrictions are always part of the
deal. For instance, you may strive to rack up your points
for the whole year to get your travel reward. But if you
fail to earn enough mile points, would you be able to carry
over your collected points for the next year? Or will all
the points you earned be forfeited and you'll have to start
from zero all over again?

Also, the timeliness of your payments is a major factor in
getting your rewards. If you delay a single payment, you
may be disqualified from the rewards program. Make sure
that you clearly understand your reward credit card's terms
and conditions on collecting and redeeming rewards.

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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.