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When you are out shopping for a credit card, you need to be aware of all the rewards that are on offer by the various banks. The rewards are not something that will add to your immediate financial needs, but it will give you a lot of bonus rewards.
There are a bunch of marketing gimmicks out there that try to woo customers into getting the latest credit card on offer. However, before falling for any one offer, you need to weigh out all your options diligently.
The reward program is one of the main things that will help a person decide upon a card. They can range from a simple zero percent interest rate credit cards, to one that offers air miles as rewards on purchases. The number of things that are marketed are dime a dozen, but you need to figure out just what offer is ideal for your needs.
The rewards that are offered can be very seducing, but it must not be the sole reason for choosing a card. There are a lot of things, like the interest rate which is important. The interest rate is what you would pay on the outstanding balance after the grace period. The interest rate can even go up to 20% per annum. Hence you need to be very careful about this. If you are going to be using the credit card just as a convenience and not a necessity, it is fine. If you use it for access to funds that you do not have, then you need to be careful about the interest rates. It`s highly recommended to review the annual fee that you will be paying to the credit card company. This can add up into several hundreds of dollars over the years.
After you take into consideration the above two factors, the next step is to look for the rewards. There is no point in getting air miles for purchases if you are not a frequent traveler. Hence you need to make a good choice about the reward program. In most cases, the reward program will not be free of cost, and you will have to pay approximately 25 dollars or so, every year.
Something you could look out for is a new promotional platform that is being offered by several financial institutions, called the bonus programs. These give customers a number of rewards and incentives that have been accrued and then are turn into goods or services.
If you are not looking for any sort of service like air transport, car services, or hotel bookings due to lack of time, or if you do not want any free goodies, because of lack of need, you must look into cash back offers. The cash back offers are not much compared to goods and services, in terms of value, but it will be good because you can use the cash for anything that you want. You can get almost 20% back on your purchases on some offers.