Ideally, reward credit cards are designed to “reward” loyal card holders and enable them to get the most from their card. Do you feel the same way too?

Although it is true that there are reward credit cards in the market that offer great opportunities, caution must also be taken when choosing the card you want. I

n this article, we’ll focus on the bad side of reward credit cards that you should know before you pick one.

Gas reward credit cards that reward only affiliate stations. If you own a car and drive often, you may be planning on getting a gas reward credit card. But take note that some gas rewards cards only give you points if you refuel from one specific gas station. Thus, you’ll want to make sure that the card’s affiliate gas station is easily accessible to you. Otherwise, you may find it difficult to collect points from your gas card.

Watch out for reward credit cards with vague conditions. For instance, if the card offers “rebates UP TO 5% for your purchases”, you need to know that you may not always receive the 5% rebate all the time. In fact, there is a chance that you may not reach the maximum 5% rebate at all.

“Up to” means the highest possible rebate you can earn, but it doesn’t guarantee that you’ll get the full 5% every time. Don’t be tricked. Understand the underlying conditions for each term the reward credit card offers.

Reward credit cards with blackout dates. Is there a limit on how long you can earn your points? For instance, do you need to collect the minimum required points within a year in order to qualify for the reward? What happens if you don’t redeem your points within that period? Will you be able to carry over your points for the next year, or will you lose all the points you’ve collected? The best reward credit cards should impose no limits on the length of time you can gather your reward points.

Excessive annual fees. Some reward cards may kill your budget with excessive annual fee charges. How much do you need to pay each year to keep your membership active? Will the cost of annual fee be as much as the value of rewards you can earn? It’s best to look for a reward card with no annual fees required from its holders.

Causes of Disqualification. You need to be clear about the rules of the credit card’s reward program. Would you be disqualified from getting your rewards if you have an existing balance on your account? Will your privilege to earn rewards expire once you’ve reached the maximum amount of purchases on your account? It is important to know the limitations you will be subjected to once you accepted the reward credit card. If not, you may end up disappointed with the credit card you chose.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

By Allison May

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on Guaranteed Approval credit cards, Unsecured credit cards for Bad Credit and other credit-related issues. The main objective here is to help people build good credit. Add Allison on

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