What Must Be Avoided from Reward Credit Cards
When it comes to reward credit cards, choices abound and each one may claim to the best for you. Nevertheless, only you can decide whether a particular credit card will match your needs or not.
Remember that advertisements often present the Best of what the credit card has to offer. The weakest points about it could be hidden from your view.
When considering your options, don’t forget to steer clear from the worst features that may come with a credit card. Here are some things to watch out for:
High Annual Fees. Reward credit cards often charge a yearly fee from its holders. Of course, it’s best to look for a credit card with no annual fees. But if your preferred reward credit card does carry an annual fee, make sure it’s reasonable. Or else you could end up paying more on annual fees alone than what you get from your rewards.
High Interest Rates. The interest rates on reward credit cards are often higher than non-reward cards but it doesn’t mean you should settle for excessive rates. Watch out for reward cards with low variable interest rates. Your rate may start out low but it can balloon unexpectedly as the Prime Rate in the market changes.
It’s best to look for a reasonable fixed-rate reward credit card so you’ll know exactly what you’re getting into. Remember, you can avoid paying the interest rates by paying your entire balance on time.
Skip the minimum due payments. Every credit card holder should aim to settle their monthly balances in full whether they own a reward credit card or just a regular credit card.
Blackout Dates. Blackout dates are bane for reward credit cards. Why? You could lose your hard-earned points just because you failed to collect the minimum required points on time. To avoid such possibilities, go for a reward credit card that doesn’t impose blackout dates or time limits.
Maximum rewards limit. You’ll also want to stay away from reward credit cards that limit your chances of earning. For instance, some reward cards may disqualify you from its reward program after redeeming your maximum reward value- for instance, when you reached your $1,000 reward.
This means, upon reaching your 1,000 dollar reward points, your privilege for getting rewards also ends. The best reward credit card should give you the chance to unlimited rewards from your purchases or card usage.
Vague Clauses. Are the rules of earning and redeeming your reward points clearly explained by your reward credit card? Watch out! Some cards may trick you into believing you can earn huge points when in fact, it is only the maximum possible points you can earn.
If you take a closer look, you may be surprised to find that it is actually very difficult to earn the maximum points and you’ll have to settle for a much lower reward. To avoid disappointments, always check the clarity of your credit card’s terms and conditions.