Feb 19
As I’m sure a lot of other people do, I get credit card solicitations on a daily basis. I only hold one credit card, and that’s the one tied to my checking account for overdraft protection. I find these offers annoying, but sometimes interesting based on what they offer. So how do you know which credit cards have a decent rewards program?
There is a good article from Bankrate.com about how to spot unrewarding reward cards. A few of the reward card traps they mention that I thought were particularly important are:
- Annual Fees - Although the fees vary, if they charge an annual fee, consider whether the benefits outweigh the cost. Looking at your current spending habits, do you anticipate charging enough to offset that yearly pinch? If not, look for a card without an annual fee.
- Expiration Dates - Some rewards cards put expiration dates on rewards earned. Comb the fine print for that important restriction, because it may mean you won’t have enough time to earn and use the points.
- Low Caps - The issuer may also limit the amount you can earn, called a cap. If you spend a good amount on the card, you obviously want a card with a higher cap limit, or none at all.
- Cumbersome rewards redemption - When you’ve spent enough to earn some cash back, will you automatically receive a check in the mail or will you have to initiate the redemption process? Also, some issuers only provide rebates annually, so find out how long you must wait before redeeming rewards.
The full article can be found HERE at Yahoo Finance.