Are Credit Rewards Really Rewarding


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Are Credit Rewards Really Rewarding

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

Peoples' reliance to credit card use is undoubtedly a trend that is unquestionably being embraced by the market. A cashless economy is indeed changing the face of purchasing industry.

Credit card use really is a click thus several credit card companies and issuers have come up to the market to dip into the big business of credit cards. Now you do not have to get the first credit card offer mailed to you and fill up the application form attached. You have plenty of choices now and that you should take advantage of.

Since the competition is tight getting as much customers would make a credit card company or provider stay in the business. This tight competition is making issuers and providers to offer alluring promotions, additional services and reward system.

Indeed reward credit cards are now being offered by credit card companies and providers to keep consumers and their spending on the go. Well the idea behind this is just simple. If you have a desired behavior and in this case it is the person`s spending through credit card use and you need that particular behavior be elicited over and over again before it extinct. Now one way to make people elicit their spending behavior is through rewarding the said act. If a person feels good about the reward it is likely for him/her to continue the desired behavior.

The reward system of credit card companies is in the form of points gathering for every dollar you spent through their cards. However the question is are these credit card rewards really rewarding?

Well this situation cannot be a win-win situation if you do not do something. Remember things just don`t happen, sometimes we make them happen. So if you want to take advantage over this marketing strategy of credit card providers, be careful about alluring offers.

Credit card companies and providers offer rebates, airline ticket miles or cash backs. Depending on your preferences and life style you can actually choose from any of this. However if you have balances in your credit card accounts, reward cards may not be the best for you. Well any points or benefits you can have from a rebate is swamped by the interests costs added when you have a balance on your account.

Next it`s best for you to do some math works. When you are told that you are just rewarded, the first thing that comes to your mind is you are given something that is for free, an additional or an extra service but is that really the case? You will never know unless you do some calculation. Credit card companies want you to use your cards more and more by orienting you to get their points and receive their freebies afterwards. Assess if you are earning enough rebates with your card and if it is worth the costs you are putting yourself into.

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.
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