Is that reward credit card a good deal?
The benefits that comes with reward credit card are enough motivation to make people desire to get one. Reward credit cards may not offer the same type of benefits. You have the responsibility of ensuring that you get the one that meets your needs. There are different types of reward credit cards out there such as travel credit cards, hotel reward cards, airline miles credit cards, gas credit cards and cashback credit cards. All these rewards notwithstanding, you need to ask yourself if the card will actually be a good deal for you. You should allow yourself to be carried away with the benefits, it is important that you understand the blueprints.
Before you conclude that a particular credit card will be a good deal for you, you should consider the following:
Read Also: What to know about reward credit cards
- Annual fee: Most reward credit cards will require that you pay annual fee. Annual fee is charged every year. It does not matter whether you use the card on not. Even if you don’t enjoy the benefits that the card offers, that is not an excuse for you not to pay the annual fee. Once you have accepted the card, you have also agreed to pay the annual fee. Therefore, the amount will be automatically charged to your credit when it is due.
- Other hidden fees: Forget about all the benefits first and pay attention to all the associated costs that may attach to the card. Do you need to incur additional cost before you can enjoy the benefit? Some reward credit cards will require that you spend a certain amount before you qualify for the benefits. If you need to stress yourself so much to the extent of spending beyond what you can conveniently afford, the card may not worth it.
- Available benefits: I believe that the main reason people apply for reward credit card is because of their benefits. Knowing the type of reward that you will get is very important. For instance, if you are not a regular traveller, getting an airline or hotel reward credit card may be a mistake because the rewards may not benefit you. Therefore, you should not apply for a reward card simply because another person gets it.
- Accessibility of the benefits: Some benefits may not be convenient or easy to access. Some benefits may require that you utilize them within a particular timeframe. If you don’t use up the benefits within the period, you may not be able to access it again. For instance, if you qualify for a free trip after you have just returned from your holiday, you may lose the reward if you can’t travel within the specified period. Also, you may be required that you spend your bonus in a particular store.
- Better options: Whatever the type of credit card you want to apply for, it is always better that you shop around. If you just jump at the first offer, you may not be getting the best deal. When you compare offers, you will be able to decide on the card that is best for you. You have opportunity to ask questions before you decide.