Five Factors That Can Make a Reward Credit Card Unrewarding

Are you likely to sign up for a reward credit card this year? If yes, ensure that you will be likely to make the best choice. Moreover, you should follow a strategy to benefit from the advantages and prevent the risks. Consider these five factors that can make a reward credit card unrewarding.

1. High maintenance costs. How much will you need to spend to keep your reward credit card active? Some of the top credit cards have really steep rates of interest as well as annual fees. The yearly fee can vary from $50 to $100 and above.

If you must pay so much on the annual fee to keep you card active, you should make sure how the reward program is actually exceptionally great. If you happen to be paying more than what you are getting, is the credit card still really worth keeping?

2. Rewards that quickly expire. If your credit card imposes an expiry time period on the rewards a person collected, you could find yourself losing all those points if you fail to redeem them on time. The ideal credit cards with rewards ought to allow you to keep the points for as long as your account will be active.

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Your Guide to Getting a Reward Credit Card in 2012

Obtaining any reward credit card is definitely a thrilling experience. After all, the thought concerning earning rewards as well as additional bonuses will certainly give any person the thrill. Are you intending to get a reward credit card this year? If yes, here is your best guide on how to find the best rewards credit card and the way to take advantage from it.

Find a credit card that fits your lifestyle. Examine your spending habits and lifestyle, and then choose a credit card that complements your needs. A reward credit card which is ideal for one person is probably not a practical choice for another.

For instance, although credit cards with airline miles or frequent flier miles reward might provide larger rewards, a huge pile of points is often required to be eligible for redemption. Keep in mind that all point you get is actually converted into 1 mile. You might need to earn at least 10,000 miles before you can get rewarded so if you are not a big spender, it will take you a while to gather points and you might not really get rewarded whatsoever.

In most cases, choose cash back credit cards if you aren't a big time traveler and if you do not drive your own car. Read and understand the fine print and pay attention to the small details, particularly the penalties and also the restrictions.

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Using Reward Credit Cards for Holiday Shopping

Credit card companies have sweetened the deal on reward credit card offers. In preparation for the up-coming holiday seasons, credit card issuers are providing bigger rewards to be able to motivate more spending from their clients as well as attract new cardholders.

Do you own a reward credit card? Are you about to make an application for one before the year ends? How are you able to make the most out of your reward credit card? And most importantly, how can you avoid holiday debt?

1. Review the reward program. Even if you own a credit card for quite a while, it is still a good idea to browse the fine print and also assess the guidelines associated with reward program before utilizing your reward card for holiday shopping. If you're still searching for a reward credit card, carefully read the fine print. Make certain that the reward system fits well along with your lifestyle.

2. Don't run up holiday debt. Ensure you don't run up into a pile of financial debt in your effort to accumulate reward points. Before charging something to your credit card, ask yourself, "Will I be able to repay my full balance promptly? If you've got uncertainties about settlement, omit the actual credit card use and pay with cash rather.

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Don’t Let You’re Reward Credit Card Lead You to Debt Trap

Rewards credit cards could be the best tool with regards on spending especially during the holiday seasons, if you know how to use them to your advantage. On the other hand, if you're not careful, spending with the best rewards credit card can lead you to the trap associated with bad credit, which in most cases, is difficult to get out of.

Now how can you able to make most of the reward credit card and avoid the debt trap? Consider these pointers:

Charge everyday purchases to your credit card with caution. Does the reward credit card offer to give you points on all types of transactions, regardless of where the acquisition was made? In that case, you'll be able to rack up more points with your credit cards with rewards to pay for your groceries, fuel, as well as other everyday expenditures. Nonetheless, this should be done with extreme caution.

Once you receive your monthly income, be sure to set aside your budget to your expenses such as foods, clothes, household supplies, gas, and so forth. If you'll use your reward credit card to do the shopping, see to it that you've adequate cash set aside for repayment. Pay off your fees immediately and don't wait until your due date of payment. In this way, it is certain that you don't spend the cash you have reserve for food budget on unneeded expenditures.

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Use Your Reward Credit Card to Get More from Your Spending

A reward credit card will be your best partner especially this holiday season. Nonetheless, the only way you can genuinely benefit from a reward credit card is to use it strategically. Consider the few suggestions concerning how to use a reward card to get more out of your spending:

Rack up those points. The more you use your own credit cards with rewards to pay for bills and make purchases, the more points you can earn. Are you planning to buy gifts for your holidays? Are you planning to put together a feast for your loved ones? If so, it is possible to take advantage of this opportunity to use your reward credit card for these expenditures and get rewarded at the same time.

Understand the reward program. Different issuers have various reward programs therefore it is important to be familiar with your own credit card. Have you been using the reward card for a long time? However, it is a good idea to review the Terms and Conditions of your reward credit card before using it with regards to spending. Get to know your privileges as well as your limitations as a cardholder.

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Reward Credit Card Tips and Credit Score

If you plan to get a reward credit card anytime soon, an excellent credit score is the greatest asset to get approved for your card that gives the most effective reward system. Search the market and you will find that many reward credit card issuers strictly require good to excellent credit. When you have the average rating or even below average credit rating your application may get declined.

Thus, it's a good idea to check your own personal credit reports first before distributing the application. Do not forget to look for the issuers credit requirement to avoid getting turned down. Keep in mind that when the application gets dropped, it could hurt your score even more.

Students, alternatively, might have better choices despite not having credit history. You can find credit cards for students with reward plans such as gas rewards, cash back, as well as travel rewards. Even with no solid credit history, college students can simply get approved for any reward credit card of their choice.

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Maximize Your Credit Card Rewards

Are you truly getting the most of what your reward credit card has to offer? If you don’t plan your credit card spending and if you do not keep up with your payments, it is very likely that you are not getting rewarded. In this article, let’s find out the techniques on how to maximize those credit card rewards.

1. Begin with the Right Reward Credit Card.

Credit cards with rewards are not all alike. Some rewards card may work for some people but not for you. It’s very important to understand your own spending style and financial status to be able to find a reward credit card that matches.

In addition, while credit card issuers advertise a hundred different types of rewards, most of them offer 1% or 1 point. Yes, rewards come in various forms like airline miles, gas rebates, hotel discounts, merchandise, gift check, etc. Generally, you earn 1 percent cash back for every 1 dollar of spending. Ultimately, the right reward credit card is the one that you can use more frequently and one that will give you the type of reward that you can enjoy.

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Enjoying the Benefits from Credit Card Reward Points

When you own a reward credit card, maximizing the points you earn is the best strategy to get more out of the program. In this article, let’s consider some practical tips on how you can make use of those hard-earned reward points to your benefit.

It’s the reward value that truly counts. It’s not just about the number of points you can earn for every dollar you spend with your reward credit card. Instead, consider the value of rewards you can earn. For example, what kind of reward can you get and how many points do you need to qualify for redemption? Some credit cards may offer to give more points per dollar but you might also need to collect a high number of points upon redemption. Don’t take a reward credit card based on the points offered alone. Instead, you need to study the reward system and see if it works for you.

Watch out for poor quality merchandise. You might be able to exchange your points for merchandise or items from your credit card’s gift shop. Unfortunately, some credit card with reward issuers settle with unbranded electronic products or second hand items that are of poor quality. You may think that you’re getting a great price when you pick a digital camera or a cell phone, but are you truly getting rewarded? Or are you made to choose from defective products? In most cases, you might be better off to choose cash back rather than exchange your points to merchandise.

Plan your redemption. One good strategy is to choose your targeted reward from the list of possible rewards and work your way towards it. If you own a travel reward credit card or a credit card with airline miles rewards, it’s very important to be able to collect the required number of points before the blackout period. It’s also a good idea to avoid peak seasons as it is usually difficult to book a free flight during this time.

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Shop Around and Get Rewarded

Credit card companies today are competing on a higher level. It’s just not about which company offers a good service or which issuer gives the lowest interest rate. Today, it’s all about which credit card offers the best rewards?

When given the choice, a lot of people would easily pick a reward credit card over non-reward cards. After all, who doesn’t want to get rewarded? Everyone is attracted to the promise of getting something in return from their spending – whether it’s a cash back, rebates, gift certificates or the opportunity to travel for free.

Are you planning to get a reward credit card too? Have you started your search or have you found the right reward credit card? The tough competition among reward card issuers should work out to your advantage. You must take it as an opportunity to choose a reward credit card that not only offers a great reward program, but also protection against bad credit.

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5 Credit Card Reward Tips to Remember

If you’re in search for a reward credit card, you’ll see that you have more than just a few choices. A lot of credit cards today offer some sort of a reward program to attract more customers. After all, who doesn’t want to get incentives in exchange for spending?

If you own a reward credit card or plan to get one, see to it that your chance to earn bonuses does not lead you to uncontrolled use. In order to really benefit from a reward credit card, a consumer must understand the process of earning redeeming points. Getting to know the exact rates and fees is just as important as well.

In this article, we have listed five essential tips that every reward cardholder must remember:

Don’t try to chase rewards. If you’re chasing after rewards, you will most likely fall into the trap of bad debt. Before charging a purchase or a bill to your account, consider carefully if you have the means to pay for those charges on time. Do not use the prospect of earning rewards as an excuse to spend more than what you really need. Owning a reward credit card should not be a passport to spend beyond your means. Keep in mind that if you will not be able to pay back your balance in full or on time, you will be charged with high interest rates and fees.

Understand the limits. Many reward credit cards impose limits on earning rewards. For instance, there may be a cap on the rewards you can earn in a month or in a year. Once you have reached that limit, you stop earning points regardless of how much you spend with your reward credit card. Even if you continue charging purchase, you will not be adding up points to your account anymore.

Don’t forget to “opt-in” when you need to. Different issuers of reward credit cards each have their own Terms and Conditions. The rules of the reward program may vary depending on the credit card you own. Sometimes, you may need to register to the rewards program to get maximum rebates and enjoy the perks. This is why it is very important to read the fine print before signing up for a credit card.

Be smart at redemption. When it comes to redeeming rewards, the rules may vary from one credit card to another as well. For instance, some reward credit cards offer several ways of redemption. You may have the option to exchange your points for cash, free travel, gift cards, merchandise or as credit in your account. It’s important to study your options well to make sure that you will get the best value.

Don’t let your points go to waste. Some credit card with rewards will allow you to carry over unused points for the next period but not all do. Does your reward credit card impose a limited period of redemption? If yes, then be sure to exchange your points before the expiration period or else they might be forfeited.

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How to Really Maximize Your Credit Card Rewards

Credit cards with rewards are enjoying huge popularity among consumers. Everybody wants to get rewarded but the question is, are you really getting the most out your own reward credit card? In truth, getting rewarded largely depends on how well you can manage your account. In this article, we present smart strategies that you can apply to maximize your chance of getting rewarded.

1. Choose the Right Rewards Cards

You need to start with the right type of reward credit card. So how do you know which one is right is for you? What kind of purchases would you usually charge to your credit card and how often would you use it? Generally, reward credit cards offer 1 point for every 1 dollar worth of purchase but the type of reward offered may vary from cash back, hotel discounts, airline miles, gas rebates, etc. Which reward program matches your personal spending and lifestyle?

2. Don’t Sign Up for Teaser Offers

Some issuers offer low or zero introductory rates as part of their marketing plan. Customers are often easily enticed by a low rate or higher reward points but these offers usually do not last for long. Perhaps you might be able to enjoy a low rate for at least six months but what happens after that? Will you be stuck with a high-rate reward credit card? Maybe you can enjoy 5% cash back for three months but when the promo period expires, you may find that the value of rewards has dropped down to only 1% or even less. When looking for a reward credit card, don’t immediately sign up for the teaser offer. Always consider the long term implications of your choice.

3. Use your reward credit card for items or bills you will pay in cash.

The best way to earn points is to charge purchases to your reward credit card. Why not use it to pay for necessities that you will pay in cash anyway? Use your reward credit cards to pay your groceries and medicines. Charge your monthly utilities to your reward credit card, too. However, if you plan to do this strategy, there is one thing you should not fail to do. It is to use your cash to pay down your credit card charges in full and on time.

4. Pay in full and on time.

There is no need to wait for your due date before submitting your payment. The earlier you can pay your credit card bills, the better it would be for you. Don’t be content with just the minimum payment. Always pay your monthly balance in full.

5. Take advantage of perks that your reward credit card offers.

Surprisingly, many reward cardholders are not taking full advantage of the perks and privileges that their credit card provides such as travel insurance, extended warranty, price protection guarantee and more. Why pay the extra cash to get a separate travel insurance or to extend a warranty when your reward credit card provides it for you for free? Review the terms and conditions of your credit card and get to know your privileges as a cardholder.

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Mistakes to Avoid for Reward Credit Cardholders

If you own a reward credit card, it is very important to take charge and not allow the prospect of earning rewards lead you to bad credit. Instead of letting your credit card take over, you should be the one to decide what types of purchases can be charged to your account. This may seem like an easy task but in reality, this can be a big challenge.

In fact, many reward credit cardholders are struggling to catch up with their bills primarily because of uncontrolled spending and poor credit card management. Let us talk about the most common mistakes reward cardholders make and how they can be avoided.

1. Paying Only the Minimum Due

It may be tempting to submit only the minimum monthly due payment instead of paying the balance in full. Some cardholders make this mistake even when they can afford to pay off their complete balance. Are you one of them too?

But if you own a credit card with reward, you have even more reason to pay your monthly balance in full. That’s because you are subjected to higher interest rates than non-reward cardholders. Imagine how much more you will end up paying, if you only pay the minimum within the next few months. The interest rate costs may well offset the value of rewards you earn.

2. Using Your Credit Card for Daily Purchases

There are two reasons why you should not charge daily purchases to your reward credit card. First, you are more likely to spend more than what your budget permits. Second, you are increasing the risk of maximizing or exceeding your limit, which can be damaging to your credit score.

Credit cards should never be used for unplanned purchases especially if you’re not sure if you will be able to pay your full balance on time. If you’re not careful, an item that you originally bought at $5 can turn to a $50 purchase because of the interest rate.

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