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Reward Credit Cards

Rewards credit cards are cards offered to people’s credit ratings. And as they turn age, credit card companies can now offer different kinds of rewards, among them frequent flyer miles, car rentals and hotel stays. If you want to know more about rewards credit cards, then here’s some of the info below:

‘Credit card companies’ credit scores are drawn directly from your credit report. To evaluate your credit report is to make inquiries into accounts you have, accounts you want to open or cancel, and transactions you want to and have cancelled.
‘Individuals accounts are often used in conjunction with credit cards, as often a credit card requires collateral or, to receive gifts. In addition, the majority of rewards credit cards allow card holders to cancel and re-open accounts even if the cards have been used or renewed without their having to give up any card privileges.
‘Individuals accounts are generally shared by the card holders or is used to transfer balances among the cards.
‘Grace Periods are known as debt consolidation where one card accepts a new offer for a credit card bill for one month, and the next month the amount in a credit card bill is put into a savings account. The grace period is the maximum amount the card issuer can continue accepting payments at any given time regardless of the amount charged to the card. Thus, rewards credit cards may offer holders the opportunity to ‘take care of your debt’ by continuing with the grace period offered to card holders.
‘Credit card companies never pay any interest on the card debt. Instead, they pay interest on interest charges and the annual percentage rate (APR). This rate is the interest rates that are charged on any unpaid balance each year and gives many members the illusion that if they continue to carry a balance on their credit card balances, the company will increase the annual interest rate and mean total balances on the credit cards. These companies often make profits by killing interest payments because they have to keep interest on balance, but again, there is usually a profit margin for doing so. So, if a rewards credit card was truly designed, then it would be very low interest rate, low interest balance transfer, and so on. Thus, making money from rewards credit cards is a very profitable trade.

‘There may be a fee to transfer balance, but those fees usually fall within the credit card’s cost of account transfer. And if, after a significant period of time in which money is not being made available to you, you decide to transfer your balances from your rewards credit cards, you might see a small percentage offsetting the problem. To me, it does sound like there would be no fee to transfer balances.
‘Many cards still require you to keep a monthly balance, but many rewards credit cards do not require you to keep a balance. In fact, some cards do not charge any maintenance fees on any balance transferred, which means you can transfer balances to those cards that charge no maintenance or annual fees.

‘Rewards credit cards are offered at the time of approval by the credit card company, and are offered on a date to be determined. For example, some cards that allow holders to transfer balances from other cards may indicate on its website the date of the transfer of the balance transfers. The ‘Transfer APR’ section on the credit card is generally lower than the other sections listed here.

As far as benefit of these rewards credit cards for you, if using a bank account, most of the reward cards allow a 0% exchange rate on purchases, the best rewards for you. Furthermore, if there is any transfer that will not be charged to your account after the introductory period is complete, a large sum of one percent of the purchase APR is applied to this transaction over a fixed or variable rate basis. Therefore, a credit card can offer high levels of savings on a balance transfer, low rates on a balance transfer when you transfer balances with other rewards credit cards that do require fixed charges. Thus, if you have a credit union credit card you are extremely lucky because all your purchases will immediately be subject to a fixed rate on the transferred balance.

Rewards credit cards also offer other benefits for you provided there is free frequent flyer miles for the card holders. This type of reward may be a necessary precaution for you if you would prefer to be given a rewards program if you find yourself in a financial crunch. For example you can receive a reward flight (some reward points will go toward redeeming your earned rewards reward miles for a specific airline ticket in a specific airline industry that offers the best credit card services for you.) Or you can use miles from the points or airlines that you will be using to redeem the reward miles. Thus you are on your way to earning more points, or the points are redeemable for any airline ticket in that industry to which you are interested while on a frequent travel to another industry.