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Rewards Credit Card – Pros and Cons

Rewards credit card offers are a popular element of the growing Internet shopping habits. These promotions are offered by several banks and lending institutions to help business people and individuals boost their credit score.

Rewards credit card also has its benefits and disadvantages.

-high interest rate

As a person is borrowing very hard to pay off card companies, the high rate of interest that card companies slap on the cards make it impossible for the borrower to make any low payments. This means that if the borrower is going to go out for a walk, for example if he wants to repay a loan about which the loan fee is higher than he might normally earn. But the card company may not be able to convince him otherwise.

-extra payments

This is usually due to the extra payment added by the card company for paying for its fees. The extra payments could be anything from the interest that the card company accrues on paid-off cards to the interest that it charges the current borrowers.

These extra payments can be quite high, but the advantage made by rewards credit cards is that the card issuer makes sure that the special incentives are being used and that the customers are using their card accordingly.

-Credit facility

Most credit card companies make special allowances not only for the clients who want to use their credit cards but also for their clients who are trying to rebuild their credit.

-Access to cash

The clients who want to use their cards have access to plenty of cash on the night when they want to purchase something. It could seem strange but in a day like the other night when the client can only buy something if he has money to spend, it makes sense for the client to go using the cards.

With rewards credit cards, the card holders often have to pay the companies fees for their use of the credit cards. This is done mainly because the card holders sometimes use their cards through unusual means like bomb-snatching flights, ATM withdrawals etc. As with credit cards, the clients have to weigh the offers provided and choose the card that is least confusing.

-Extension benefits

Extension benefits are certain benefits that enable the card to offer its customer the different kinds of services that the card company offers.

These benefits come up when the card users are seeking out extra facilities to use theirs card. An extension credit card comes handy. Extended cards are even more special for the clients who are already planning for a huge sum of money when they need things like a taxi or hotel accommodation.

Extension benefits of standard credit cards

Unlike credit cards, cards offered by mainland countries also have special facilities to entice their customers to use their credit card. Some of the facilities include the frequent flyer points or bonuses that the customers get when booking hotel accommodations and cruises, the travel benefits that are offered by the card holders, frequent flier credit cards, bonus cards, hotel hopping, travel insurance, airline miles rewards, cash back cards, etc.

So, since credit cards are a good means to provide the customers, the clients must weigh and choose those that are least confusing.

Extension credit cards – the business people

The clients of extension credit cards are the customers who are having hard time obtaining credit cards. These kinds of things happen. Some clients of credit cards can get a free upgrade when booking a hotel accommodation but when they apply for an extension credit card, they are sent instead with notices saying that their free upgrade is now void. People who apply for an extension credit card need not worry that their regular credit card will automatically be charged with a special card.

However, the clients of extensions credit cards also fall into the category of the clients who don’t use their credit cards and then later go bust. This is because of the high interest rates that some credit card companies can charge to the customer. The clients of extensions credit cards, like those of standard credit cards, also should worry that their regular cards will soon be cancelled. But we won’t go into detail about the issue because the client problems in this topic alone are enough for us to delve deeper and find the best solution.

Extended Credit Cards

These are cards that give cardholders a fixed or a variable amount of credit depending on the amount of purchases made and the point of purchases made amount during the billing period.

The credit card companies commonly offer credit cards that provide extended credit cards for an up to 12 months. These cards will incur an interest rate and a grace period for processing the bill.

Cardholders should be very attentive in using the secured card program for financial institutions that have an authorized user.