Understanding the relationship between bad credit history and reward cards
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many 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 » Understanding the relationship between bad credit history and reward cards

Understanding the relationship between bad credit history and reward cards


Updated: December 26, 2012

By
Add to Favorites:

We all know how difficult things can get when credit history goes bad. An important mistake many people make is to blindly opt for whichever credit card they seem pre-approved for. It can be quite exciting getting mail saying pre-approved, but it is important to know that it merely means that the company is simply aware of your credit score and is sending you offer you might be eligible to apply for. Whether you can afford it or pay for it is a whole other decision altogether. Every single individual should above all else consider their credit to debit ratio and be sure that they can get a card with ease before applying for it. The sooner they clarify that, the better it is. It is quite easy to get a bad credit history; it is however more than difficult to maintain good scores and eligibility on your account

When you have decided to go in for a credit card you have to work out what you want to pay for. If you choose to simply spend on a card simply because it comes with attractive rewards you will be making a serious error in judgment. Most often reward cards come at a cost that is not so good - a high interest rate. Now with a high rate you cannot pay off what you owe every month with ease. Therefore it is important that people learn to work out their affordability and credibility when it comes to maintaining a good credit score to get their hands on a better card.

Another mistake most people tend to make is in opting for cards which come with gift coupons. Most often when they get close to acquiring a reward, they tend to spend over and above their usual set limit. This can result in some severe losses. For one thing the gift coupons may not be very flexible and you may be getting coupons for brands and purchases you do not like. Another thing is that they will have to be used within a said date and when it comes to travel or dining coupons it can be quite taxing to travel all the way just to redeem it. And often the cost of the reward may be much lesser than the amount you have ended up spending to earn it. This is also quite detrimental to your credit history and can cause bad credit history issues if you overspend.

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:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: August 9, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading