The ABCs Of Making The Most Of Your Rewards Credit Card
Making The Best Out of Your Rewards Credit Card Every day as consumers we spend money on all sorts goods or services.
Some of us use cash while others use either a debit or credit card.
If you are using a credit card then perhaps you might be using a some sort of rewards offer.
These days there are many rewards card offers to choose from besides just airlines.
You may choose from a wide variety of rewards options in categories ranging from department stores, gasoline, groceries, home improvement, restaurants, car rental as well as the original airlines offers.
In order to make the best out of your card you should always have a thorough understanding of all the features that are most associated with most rewards offers.
The most important feature that should never be overlooked in any card offer is going to be the introductory offer versus the regular APR.
Providers are always looking for new ways to entice new customers.
Remember, credit card issuers make money from interest and all sorts of fees that they apply to your card.
The introductory offer is just there to get you in the door.
These intro offers usually run anywhere from 6, 9, 12, 18, or 24 months.
The offer usually gives either free or 0 interest or a very low rate.
Once the offer is over the interest rate will jump to the regular APR rate.
This rate can range these days anywhere from 13% to 20%, depending upon the offer and your credit rating.
Furthermore, rewards credit card issuers even go as far as differentiating different times for both purchases and balance transfers.
Some issuers will give you more time for purchases while others give more time for balance transfers.
Some card issuers do not differentiate between the two at all.
The second most important feature that should never be over looked is the terms and conditions.
Be sure that you understand 100% the terms and conditions prior to making any application either online or from a rewards credit card offer application that just arrived in the mail.
The terms and conditions will specify any fines or penalties that you might incur for anything ranging from a late payment to an over the limit fee.
Furthermore, be aware that the terms and conditions will also explain to you how to redeem your rewards points.
In addition, be advised that many rewards credit card offer issuers will rescind any rewards points that you have earned for making late payments.
The terms and conditions will also explain to you if there is any way for you to get your points back.
Some issuers will allow you to pay your way back.
This however, will cost you extra money that you should have not spent.
Rewards credit card issuers will also place you in a high risk category and charge you a higher interest rate if you pay your statement late.
All these details should be clearly explained in the terms and conditions of any offer on the market.
The last feature that you should look at before you apply for a rewards card are the rewards categories themselves.
The first thing that you need to ask yourself is: What is the primary purpose of my card? Am I going to be doing frequent traveling by airplane.
Perhaps, you are going to be traveling mostly via car.
Perhaps, you will not be traveling much at all and plan to stay home and fix up your garden.
Look at your life style and determine what is going to suit your needs the best.
A travel card will not do you any good if you are the type of person who does not get out of the house much and likes to work in the garden.
This person might want to look at a rewards card offer in the home improvement category.
By now, most readers should be understanding how to analyze their own individual lifestyle.
If you are totally confused, then you should maybe look at an offer that lets you earn points on your grocery shopping.
Rewards offers when used properly can save you money.
Find a card that has a good interest rate as well as an introductory offer for you to take advantage of free or very low interest.
Remember that it is very important for you to pay the balance off in full if you want to benefit from the most savings.
Most issuers will give you free interest simply for paying your balance off every month.
Those who do not pay their balance in full each month will end up paying more money on interest charges than the rewards offers are probably worth.
Rewards are just a way of enticing customers into a game thinking that they are going toe be saving money.
Consumers who use their rewards credit card properly can benefit substantially from their frequent every day use.
Some of us use cash while others use either a debit or credit card.
If you are using a credit card then perhaps you might be using a some sort of rewards offer.
These days there are many rewards card offers to choose from besides just airlines.
You may choose from a wide variety of rewards options in categories ranging from department stores, gasoline, groceries, home improvement, restaurants, car rental as well as the original airlines offers.
In order to make the best out of your card you should always have a thorough understanding of all the features that are most associated with most rewards offers.
The most important feature that should never be overlooked in any card offer is going to be the introductory offer versus the regular APR.
Providers are always looking for new ways to entice new customers.
Remember, credit card issuers make money from interest and all sorts of fees that they apply to your card.
The introductory offer is just there to get you in the door.
These intro offers usually run anywhere from 6, 9, 12, 18, or 24 months.
The offer usually gives either free or 0 interest or a very low rate.
Once the offer is over the interest rate will jump to the regular APR rate.
This rate can range these days anywhere from 13% to 20%, depending upon the offer and your credit rating.
Furthermore, rewards credit card issuers even go as far as differentiating different times for both purchases and balance transfers.
Some issuers will give you more time for purchases while others give more time for balance transfers.
Some card issuers do not differentiate between the two at all.
The second most important feature that should never be over looked is the terms and conditions.
Be sure that you understand 100% the terms and conditions prior to making any application either online or from a rewards credit card offer application that just arrived in the mail.
The terms and conditions will specify any fines or penalties that you might incur for anything ranging from a late payment to an over the limit fee.
Furthermore, be aware that the terms and conditions will also explain to you how to redeem your rewards points.
In addition, be advised that many rewards credit card offer issuers will rescind any rewards points that you have earned for making late payments.
The terms and conditions will also explain to you if there is any way for you to get your points back.
Some issuers will allow you to pay your way back.
This however, will cost you extra money that you should have not spent.
Rewards credit card issuers will also place you in a high risk category and charge you a higher interest rate if you pay your statement late.
All these details should be clearly explained in the terms and conditions of any offer on the market.
The last feature that you should look at before you apply for a rewards card are the rewards categories themselves.
The first thing that you need to ask yourself is: What is the primary purpose of my card? Am I going to be doing frequent traveling by airplane.
Perhaps, you are going to be traveling mostly via car.
Perhaps, you will not be traveling much at all and plan to stay home and fix up your garden.
Look at your life style and determine what is going to suit your needs the best.
A travel card will not do you any good if you are the type of person who does not get out of the house much and likes to work in the garden.
This person might want to look at a rewards card offer in the home improvement category.
By now, most readers should be understanding how to analyze their own individual lifestyle.
If you are totally confused, then you should maybe look at an offer that lets you earn points on your grocery shopping.
Rewards offers when used properly can save you money.
Find a card that has a good interest rate as well as an introductory offer for you to take advantage of free or very low interest.
Remember that it is very important for you to pay the balance off in full if you want to benefit from the most savings.
Most issuers will give you free interest simply for paying your balance off every month.
Those who do not pay their balance in full each month will end up paying more money on interest charges than the rewards offers are probably worth.
Rewards are just a way of enticing customers into a game thinking that they are going toe be saving money.
Consumers who use their rewards credit card properly can benefit substantially from their frequent every day use.