Prerequisites to applying for a rewards credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Prerequisites to applying for a rewards credit cards

Prerequisites to applying for a rewards credit cards


Updated: December 26, 2012

It is beyond doubt that credit cards have become an integral part of our lives and play an important role in our financial well being. There are a number of credit cards being offered by banks to customers eagerly waiting to apply for them. The most preferred category among credit cards is the rewards credit cards. Customers find this option to be alluring since they get rewarded each time they use the card. However, most customers fail to look beyond the rewards. The fine print on reward cards come with a lot of conditions that you should be aware of before applying for them. Let us take a look at a few factors that you need to take into consideration before filling out that application form. Types of rewards There are a variety of rewards offered by banks to customers. Some of the most common types of rewards are cashback, discounts and air miles for each dollar spent on the card. There are banks that offer premium show tickets and merchandize as well for customers to choose from. It is important to understand that the bigger the rewards on the card, the stricter the rules that govern them. Ensure you opt for the rewards that you are sure to use on a regular basis. For example, if you are person who does not travel much, it makes no sense to opt for the air miles credit cards. A credit card that offer cash back, merchandize or discounts on shopping may prove to be a better option. The fees and the other costs It is imperative to know that rewards credit card, appealing though they may seem, have a lot of costs associated to them. Primarily, the annual fee of the cost is going to be significantly higher than that of the regular credit cards. This can set you back by hundreds of dollars. The other aspects such as the interest rate, late fees and other penalties will also be on the higher side, thus proving to be extremely expensive in the long run. Hence, do not opt for these cards unless you are sure you can pay all these charges. Terms and conditions Read and understand the fine print on the application form before you fill in your details and sign on it. Find out about the grace period on the cards and the rules governing the redemption of the points earned. It is also critical to understand how you can earn the points on the cards. While some financial institutions offer $1 for every $100 spent on the card, a few others may offer lesser than that. Also, check the time frame within which you will have to redeem your points so you don't let them go in vain. Most banks also set a particular limit before you go about claiming your rewards. Find out about this limit well in advance. There are rewards credit cards that do offer you complete value for money, but you can find the right ones only when you compare the ones that are available in the market and match them with your needs. A little effort and time spent on this can go a long way in helping you maintain your financial well being.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Posted: December 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: December 1, 2017

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading