Ninety percent of all US credit card holders are enrolled in “freebie” rewards programs. Offering something for nothing is a very old trick and we must now know that it is not so. Rewards or bonus programs rarely give you anything that is truly free. For you will always pay in the end.
Frequent flyer miles turned out to be a real hassle to redeem, and many users soon gave up on the effort. Credit companies realized the depression and a plethora of different rewards and bonus programs began. a simple incentive. They want you to initially choose their card over others and then want you to spend more than you normally would, trying to redeem points for rewards.
To make redemption as difficult as possible, many restrictions are placed in the contract. You can find these in fine print. You will often be limited to a certain brand or time limit, so you only have so many points to convert.
You will often find interest-rates attached to these goods. The wages can reach up to almost twenty percent. Of course, such rates would negate any benefit you could get from the premiums. With increased fees and restrictive restrictions, many cardholders never use their rewards.
It is not wise to apply for a credit card just because of the “freebie” offer. There are several practical things to consider when choosing a credit card. However, if you sign up for a rewards program, make sure you participate in your reward. You don’t want a reward card to travel many miles if you always take the bus.
Convert your personal purchasing patterns into points. The offer will tell you how much you need to spend for a certain amount of rewards. Compare this information to your usual credit card expenses. If you find that you will have more money than your usual budget, this is a bad deal for you.
Good cash back is probably the best bet because it accumulates rewards without much effort. These programs usually do not work in the points system and the cash rarely goes unused. Studies show that cash back programs offer the best rewards.
You should avoid rewards programs if you frequently carry over your balance from month to month. The balance will be added to the higher interest rate and you’ll end up making more money than the rewards ever offset.
Some credit cards offer generous rewards. Also, there is usually a large amount of interest attached to these offerings, and the charity receives a small amount of money. You will be better off reading cash to card and cash by sending to help organize your own.
So be careful when choosing a credit card. You may not base your decision on the proposed rewards, but if you do, make sure the rewards are good for you. Never pay for a “freebie”.
