This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.
Every single person today has opted for or is opting for a reward credit card. It is exciting to read about offers and winning something at the end of spending a good amount of money is always a joy. It is not however necessarily the only reason to go for a reward credit card
. Think of how much it will cost you. There will be an APR which is higher than on a regular credit card. Moreover there will also be certain charges applicable like an annual fee. Reward credit cards can make things get really out of hand if you are not careful.
Consider your reward credit card, do you know exactly how much you have to spend in order to earn that free dinner or the free air ticket. And check how often has the free coupon or seats been available when you really wanted it. A lot of the time reward credit cards are just gimmicks meant to lure in folks to spend more money. You do not realize until you sit down and do the numbers that you have spent far more to earn that reward that what it is actually worth.
Credit cards and their rewards have had many people signing up without thinking of the terms and conditions involved. Certain reward cards claim cash back offers. Sounds like the ideal deal, earn while you shop. But then, you may find that the cash back offer is valid only on purchases above a certain amount or on certain brands. Check before signing up, how useful a reward card really is when considering your shopping habits. If it’s a loss then don’t opt for it. You will simply end up with hardly any benefits and a really expensive bill every month.
Reward credit cards sound like a painful experience so far, but it is not always the case. For many people it is quite useful and it gains them entry into many exclusive events. Frequent flier miles are great when you have a large family and travel by air a lot. It is also good to receive special consideration in booking tickets for events, movies and other occasions. Certain reward cards double as privilege cards which are only for exclusive people. They are expensive, but then those who can afford them find it worth their money. It is a ticket to parties and people who belong to the celebrity category many a time.
All said and done, reward credit cards are just as important as your regular credit card if you can afford them. You have to spend time reading up on what it entails of course. Every term and condition should be carefully understood before you opt for that brand new reward credit card. There are many occasions where people have ended up with huge losses because they were unaware of exactly what they were singing up for. Don’t make this costly mistake, rather check everything thoroughly and use it with discretion to enjoy the card and its benefits.