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A
rewards program is what many
credit card issuers are offering their
cardholders. The goal of a rewards program is to
encourage credit card holders to use just one
credit card to make their purchases.
These days,
rewards programs are all the rage. There seems
almost to be a never-ending competition amongst
credit card issuers to see which one can come up
with the biggest and best rewards program. That’s
great for those issuing the
credit cards, but it can be downright
confusing for consumers. And dangerous, too.
How do you know if a credit card with a rewards
program is right for you? Financial experts advise
a simple way of making this determination. Do you
tend to carry a balance on your credit cards or do
you regularly pay the balance in full every month?
If you carry a balance, you might find that the
higher rates of interest that rewards program
credit cards carry offset any benefit or reward
you would derive from using that credit card.
And even if you do charge on your credit cards
only as much as you can afford to pay each month,
you still need to proceed with caution when
choosing a rewards program. |
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