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Rewards are not always good for you

Say you bought a car of which you got a reward and can, in the process, benefit from it. You buy a new, better, and you get to enjoy the privilege of owning it. How do you make use of your chance to get a card that actually benefits you? Well, at least in theory; especially to those who are already heavily involved in high-rate credit card offers.

The first thing you need to do is examine your monthly billing statements for each of the major credit card companies you currently hold. Then start your yearly financial planner. Now calculate the total amount you’ll spend each month on your regular credit card charges. It’s exactly what you wanted this month; free!

Calculate the total amount you will spend on your regular credit card credit card per month. You should probably do this for all of your charged credit card purchases and not just for the first six figures. You should also try to include any other finance charges, for which you are not obligated to pay, when you apply for credit card. Make sure they will be fairly included in this figure to avoid incurring certain other high cost charges for using the card. For instance, some debt management companies charge as much as ’20 on a contract basis! After some research on the market, you should probably pay that much!

Another thing to consider is the interest rate they will be charging you on these new, lower-rate cards. Look at your salary and include the cost of all the “free stuff” like annual fees and the penalties that will accrue from any late payments, over-limit fees, etc.

This is what you want to do when the offer comes in for your regular and rewards credit cards. Look at the interest rate, too, but keep in mind that it’s written off as an extra ‘interest’ plus you don’t get any kind of penalty attached. Even the most reputable credit card companies will automatically pay off your balance in full each month (unlike some ‘official’ ones, who are forced to impose a ‘late fee’ for any payment that you take late.

You’ll want to make sure to only use each of the rewards credit cards that you buy for the regular one. As long as you’re absolutely sure that you will be charged any penalty fees, there is nothing you can do to get them raised.

Continue to check out your credit card statements to see if there have been any balance transfer deals since you started looking into these offers. Maybe you should make a transfer to a new lower-rate card that will grant you a lower percentage (say 10 percent) on your bills each month. At this time (unless you’re making some sort of major finance consolidation act lately), you’ll stop receiving any of the free goodies you’re offering. As the weeks go on, you’ll be better off with your frequent-flier credit cards getting better interest rates and no penalty fees. Now you’ll be better of paying less each month to maximize the deals.

By paying off your credit card bill in full each month (and your salary and severance packages from the promotion are quite a while past) you should be able to get some good rewards out of the rewards credit cards. If not, you’ll have to be a complete leper to get those rewards. Some of the offers you can choose from are often more expensive than the others, so compare them all in a few days – but remember ‘Be careful!’ And if your rewards credit cards are going to be a major contributor to your financial woes, don’t ignore them and focus on the rewards themselves. Remember, ‘Be a smart money shopper!’.”

Copyright 2000 Ed Vegliante.

Rewards Credit Card

Let’s face it; not all credit cards are created equal. If you look at a credit card, however, it will be something special. Get a reward for every purchase you make. Get free air miles, or one hundred – one – one for every dollar charged. And if you use that card regularly, you’ll make sure you even the standard splurge that you should in our book. We all know how expensive financial life is. Take a look around and you may find what you are looking for.

This article covers some general rules that you can use to find the best rewards credit cards out there. You’ll want to be very careful about what customers mean to you by ‘experts’

First off, look around. There are so many reward cards that you can find that offer reward for everything.