April has been Credit Card Question and Answer month here at Financial Elite. We continue with Part 4 with information provided from an article from SmartMoney about the little known rules that are costing you money and putting your credit, your identity and your family at risk.
In this hyper competitive credit card marketplace, rewards are a way for banks to target big- spending niche audiences. For instance- frequent flyer's, frequent hotel stayers, or big time shoppers! But what people don't know is that these programs come with catches, such as high interest rates and/or high annual fees, so do your homework, a good rewards card done not always make financial sense for just anyone.
Before signing up for a rewards card figure out how much you have to spend to ear the incentives from any given card. If the math works out to anything less than one penny earned per dollar spend (or a mile per dollar, in the case of mileage cards), then you can do better.
Also, be sure to look for rewards that best suit your needs, For example if you want an abundance of options, from retail goods and services to charitable donations. American Express Membership Rewards cards let you accumulate points at the rate of a penny per dollar spend- and double that at gas stations and drugstores. Or if it's air miles you are after then look into the United Mileage Plus Signature Visa is one card that stands out from the pack, with its one-mile-per-dollar ratio and host of travel benefits, including upgrades.
No comments:
Post a Comment