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Research: Are credit card rewards really worth it? -

People are always in a dilemma as to whether or not to go for a credit card given the problems that are inherently associated with it. The main thing that people get worried about is not being able to pay back on the purchases made on a credit card given the fact that it is difficult to keep account of what is spent. A lot of youngsters these days feel that a credit card is a license to buy whatever one wants up to the credit limit on the card but it takes time to realize that one has to pay back to the bank at the end of the month.

Given all the incentives for having a credit card, anybody with a steady job can have one these days. So what are the incentives that are available out there? And which ones are really worth going for? These are questions that we will answer in the following passages.

The most common type of reward that is on offer these days is the points based system of reward. Here, one can get points for every purchase that one makes. The number of points that one gets will depend on the amount of money spent or in other cases the number of times you swipe your card. But in any case you need to make sure that you do not end up spending on your card just so that you can earn some points. You need to be aware that if you spend on your card, you are responsible for paying up for it. It is only when you realize this that you can become financially secured.

Another sort of reward would be when you get commodities or services along with your card itself. It could be a free vacation package or a mobile phone at times. In any case, you need to know whether or not that particular package or commodity is something that you need. There is no point in getting a free air cooler if you live in northern Wyoming! So make sure that you are getting something that you really need and are not just getting some schlock that will fill up your house.

But over and above all these rewards, try getting a good deal on the cards features itself. The lower the interest rate on your card, the better it will be for all the purchases you make on it. You can also enquire about interest free periods during which you will not need to pay any amount on the card at all. Many credit card companies give out such deals which will help you out a lot if you need to make emergency purchases and do not have the required amount to make the payback. The interest free period can extend from between six months to almost a year in some cases. This will give you sufficient time to put your finances in order before you start making payments.