Credit Rewards Introduction
Increasing competition for customers caused different credit organization to issue cards with various offers for rewards programs, offering cash back and points that can be exchanged for goods and services such as air miles, hotel stays or car rental. With all obvious advantages reward credit cards may not always be the best option among the variety of credit cards. Read more... 
Not only do you get immediate gratification with the buy now-pay later plastic, but now, many credit cards offer rewards and incentives for using their card to make purchases. You can get cash back, or gift cards, or ‘reward points' that you can spend on merchandise or services from various merchants. There are also cards that allow you to designate your ‘cash back' points to a charity – sometimes called affinity cards – and those that put your cash back into a special savings account for college.
Deflate Your Credit Card Rate
State PIRGs did a survey to show a simple action consumers can take to lower interest rate of their credit card and saving them up to thousands of dollars paying the balances. Volunteers who took participation in this survey had to call their credit card issuing company and ask do decrease annual percentage rate. Read more...
Great deal, right? You spend your money and get something in return. The catch is, of course, that you're paying interest and card fees to get your cash back rewards. But if you're going to be using the credit card anyway, you might as well get something back out of it, right?
Most cash-back cards give you 1-2% cash back on most of your purchases. You'll get a check at specified periods for the amount of your ‘rewards cash'. You can cash the check and spend the money on anything you want.
If You Can`t Pay the Balance, Look for a Low Interest Rate
Although it is strongly recommended to pay off your credit card balance each month in full, the interest rate you are charged by the terms and conditions of your credit card (known as the annual percentage rate) plays general role if you ever try to maintain a balance. The average credit card APR in the United States is 13.37 %. However, more than 50% of the states in America have no limit on the amount a credit card company can charge a credit card user. Read more...
Reward cards give you 1-5 reward points for every dollar that you spend at different merchants and types of merchants. Most pay you 5 reward points for purchases made at their ‘Merchant Thank You' network, and for purchases made at gas stations, drug stores and supermarkets. You'll get 1 reward point for every dollar that you spend at other merchants. You can then redeem your reward points for particular items from the merchants that belong to the credit card's merchant network.
Which is the better choice?
Each kind of credit card reward has its own pros and cons, and the better choice depends on what's most important to you.
Cash-back Rewards – Pros
Cash can be used anywhere, for any kind of purchase. Gives 1% - 2% cash back on all purchases.
Cash-back Rewards – Cons
Beating Credit Card Debt
Your credit card debt can be paid off even in the most difficult cases. And you can shift your life of financial independence and stability. It does take some time, knowledge and patience. Knowledge of how the credit card system works, strict and in-time payments, spendings schedule, and hard work, possibly in the form of an extra job, will be rewarded with the ability to put your credit card debt behind you. Read more...
Rewards points cards may give rewards of higher value, particularly for purchases at merchant networks stores, gas stations and supermarkets. Cash-back can only be used when a check is issued.
Rewards Points – Pros
Rewards points are often higher value than cash-back. If you use the credit card for purchases made within the merchant member network, you can get as much as 5% value back when you spend your reward points.
Credit Bureaus
Credit Bureaus access information about your payments right from the companies you are applying for credit card credit with, or from state agencies (the legal court system). To create your credit report they use this historical information about some of your financial transactions. This consumer report reveals complete information about you, including where you live and work, whether your bills were paid on time and if you`ve ever been sued, arrested or filed for bankruptcy. Read more...
Reward points are available to use on a rolling basis. Some card companies may require you to accumulate a certain number of rewards points before redeeming them, but reward point rewards are often more easily available than cash-back rewards. Reward points can be used for cash rewards in some circumstances.
Reward Points – Cons
Reward points can only be redeemed from particular merchants and/or on particular merchandise.
Whichever your choice, it makes good sense to get something back when you choose to use credit. If you're a frequent credit card user, the rewards can certainly add up. Among the merchants that belong to various Merchant Member networks are such well-known companies as airlines, Saks Fifth Avenue , Evelyn & Crabtree and Smarter Edge.
Current Credit Card Products
Classic credit cards is the basic products and is the most widely used bankcard in the world. Read more... |
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