rewarded as you spend money with your credit card makes things interesting for a
credit card holder. The cashback, free gas, free air travel, free shopping,
discounted merchandise and other freebies that a reward credit card brings with
it, add value to credit card ownership. But, there are many things that should
be considered to get the maximum benefits from a reward credit card. Read on to
get familiar with the basics.
Getting the right reward card that 'really'
helps your cause is the first thing that should be kept in mind while going for
a reward card. There is no point in taking a credit card with gas reward if you
don't drive much. Similarly, if you rarely fly, an airline miles reward card
will be worthless for you.
What are the limitations to reward program? Get clear about it. Ask the
credit card agent or representative about store preferences, gas outlets to
which the credit card is affiliated, airlines, blackout dates, travel
restrictions, reward expiry, reward point accumulation and what is required to
earn rewards. A reward credit card with lots of restrictions and difficult to
redeem gift vouchers or reward points will only frustrate things on your end.
A reward program with balance transfer option with 0% intro APR is a good
thing to have. It saves you money on high interest rates, and if used properly
0% intro APR credit card can be a good asset.
A good credit history helps you get a good credit card with excellent reward
programs. Credit cards with reward programs have very low tolerance for
repayment defaults. Generally, if a person defaults the 0% intro APR ceases
instantly and a high regular APR takes its place. Similar things happen to other
rewards. These things are not told, to the customer but are buried in fine
prints. And fine prints control how your reward program behaves under different
conditions. So, it is better to get a good idea about all the things that can
affect your credit card reward program before settling for a particular reward