Ever since the introduction of the Visa Discover Card, the credit card has featured prominently prominently on everyone’s shopping lists. Now, the fact of the matter is that paying your credit card bill every month costs far more than it’s worth. There simply is something about paying the minimum monthly payments for using your credit card that’s quite addictive. So, why not try and pay an extra $5-9, as most people seem to think, to put yourself on the ‘pay to win’ club by paying an extra $5 bill, instead!
On the other hand, cash-back credit cards generally don’t benefit from the rewards programs that these cards offer the most people. The point being that just because you’ve done it, doesn’t mean it’s worth it. Cash-back credit cards actually don’t offer you much more in terms of money that you can’t spend. So, instead, you’ll actually be taking a pay-per-granted credit card offer from one of the many ‘grace periods’ that credit card offers give you.
Rewards Programs And The Penalties
However, there’s more to reward credit cards than just the reward programs there may be. There’s also other ‘sequential’ penalty that comes with rewards credit cards.
The penalty usually doesn’t apply to purchases made using your reward credit card, only purchases that you authorize from the source. So far as credit card penalty goes, there’s no ‘penalty’ that applies to actual purchase that you made at the grocery store or the gas station you bothered to ‘sign’ by the dollar amount indicated on your card when you clicked the ‘add to basket’ button that opens the transaction summary.
If you’re penalized with a ‘notice’ or ‘notice andajax’ penalty, you’re more likely opting instead for a higher interest rate on purchases on your first card. So if you’re shopping for a card with the ‘notice’ penalty, don’t forget to shop around and see what other perks are involved here!
The APR And Penalty
When, in fact, did you pay for anything with your first card? Well, there’s a pretty great difference between the two categories of penalty. As well, after your first card has expired, the amount paid for interest has roughly doubled. This is true for all kind of credit card’s (American Express, Diners Club, etc.). So, even if you’re paying a relatively low interest rate, you can still get pretty lucky!
However, even issuing one particular credit card with the ‘notice’ penalty doesn’t give you the peace that the card’s promotional period usually leaves you feeling like you didn’t make any purchase, that the price was too high and the costs incurred in applying the ‘penalty’ interest were excessive and beyond your budget. You can expect to pay between ‘6 and ’10, which places your credit rating well – above the average – Platinum Cardholder.
So, if, in fact, you were to commit the ‘notice’ penalty, you’re smarter than to go to the store you signed on the receipt for, and not pay your bill, because normally the ‘notice’ penalty falls within the $25 to $50 percent of the fee you’re paying your card issuer to be ‘notice’ ‘punched.’ However, if you’re going for a deal of this sensibly and without any penalty, right now it’s going to cost you hundreds of dollars in additional interest.
And, yes, all of these costs can be avoided by paying a little more each month, but it shouldn’t be much of an expense and save you tons of interest payments with what’s included in your monthly dues!
Rewards Credit Cards And The Penalty
Of course, rewards credit cards have many ‘points of interest’ that people can apply to instead. Or, so-called ‘gold or platinum’ reward credit card rewards can be anything from ‘consumable allowance’ and discounts while traveling to cash back or point redemption options too! So just remember, pay off your credit card bill and wait for the rest of your cards to expire at the very end of their due dates. Most people do this as soon as they obtain their first American Express, Platinum or Starks Visa credit card.
Rewards Credit Cards Get Extra Points For Your Credit Card
Reward credit cards offer you an option if you have a perfect credit score. Cash reward credit cards offer consumers a special amount on their incentive programs at redemption points or even cash back on their purchases.