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Rewards credit cards: The pitfalls

This article is about getting rid of high interest rate credit card rewards at a financially fast rate. This is because ‘low rate’ means that you need to pay off your outstanding amount every month and, more specifically, you need to pay off the balances instead of spending them.

Having a reward credit card also means that you can purchase anything – whatever that is – without paying any interest if you pay off your credit cards. The rewards banks and the reward providers have to follow a certain standard – which is very few (if any) – so you really don’t need any credit at all if you want to get the “best credit card deal”, which is a big fat fat fat reduction in your APR (even if you regularly spend the equivalent of everything you earn).

Why pay interest on your credit card debt?
When you only pay the minimum payment on your credit card balance each month it is difficult to pay off your credit card debt without adding even more interest.

With the minimum payment of 2% there is an absolutely NO one who would want to do business with you because you are making credit card fees too high.

A percentage fee is one of the most expensive fees credit card providers charge in order to keep their business. So pay no attention to them, because they cost so much money!

Why do I need credit cards?
Credit cards companies want you to have credit cards as part of their ongoing strategy of “inspiring new customers” – so they will give you credit card offers that you never even knew existed.

In addition to the interest and fees of owning a credit card, credit card issuers also offer companies a variety of other financial offerings (like bonuses and discounts!) and special perks for using one.

What’s in a reward credit card
A reward credit card is a card that usually features a credit card type reward associated with it. It might always be flying a special airline award in your gift certificate, a Christmas present (nice looking one, but not actually one!) or even a nice jacket if you have the reward points.

The only thing to think of when you think about it is that you want something awesome that may be free and you don’t think you can pay for with your credit card. So the next time you see a $50 gift certificate for a trip that you don’t know about. Think twice or think about redeeming that for that amazing one free ticket.

Are reward cards truly RFID credit cards?
An RFID credit cards – it really is – is a type of credit card that works by ‘radioing’ information back and forth to a credit card. Rather than letting information pass between two or more card owners, this RFID chip on the credit card reader is the first component of the card’s ‘information’ chain, while a microprocessor is providing three-way communication with a 3.2-digit code.

What are the rewards offered within a rewards card?
You can get points at the end of the year on all sorts of things as well. Select a card for 25,000 points, give it a month, and get 1 point for every dollar you spend! You will probably get 3 points for that dollar spent. And that’s all. Think about it. Now, you do not have to pay for things when you take them out of the spending cart. You can even set your limits so you can never have more than 25,000 points.

Can a reward credit card be used to collect and store useful items?
Believe it or not, there are a huge number of reward cards available to us that let you request items you otherwise would not have purchased from a catalog of your choice. You can use your points to get big time items for your friends!

What are some of the charges faced by the majority of credit card issuers?
While such charges include high APR’s and high interest (up to 7.99%) rate of interest such as annual percentage rate (APR), the actual APR at the point of purchase is generally lower, which is only a sign of financial trouble. These same issuers do not charge an annual fee for the credit card – and have generally kept the APR level unchanged. Thus, those who have excellent credit can obtain the most discounted APRs in the market (and a better deal than if you are having problems with credit).

Are credit cards safe to use AT ALL?
While all credit cards have certain risks, in general they are not very different from unsecured credit cards. In fact, even those who have poor credit (or perhaps worse) can get some great deals on credit cards. Be careful of the different types of offers! As the saying goes, anytime you use plastic money, it’s usually with a kinder, gentler hand.