Rewards Credit Card does it Worth Having It? Credit card Rewards might or might not worth having depending on personality. If you think having a credit card rewards may worth having, it’s important to know that some rewards are much more difficult to earn and redeem than others. Credit card issuers entice people to open an account. With great rewards offers such as free trips, discounts on purchases and cash back. Above it is important to use credit cards responsibly. So before you think of getting a rewards credit card, answer the following questions.
Does the Credit Card Have an Annual Fees
However, To get a reward credit card you have to check if there’s an annual fee attached to such card. Another is the amount of annual fee you would be charged with. Alternatively, there are lots of rewards credit card that does not charge an annual fee. Also, check before signing up for a rewards base card if the rewards earnings are more than annual fee charges. Then you compare that with similar rewards cards with no fee.
Are You Paying Off You’re a cards Each Month?
Generally, If you’re not able to pay off your card in full each month, the rewards are not worth it. For instance, cash back card, you can earn between 1-5% cash back on each purchase made. If you have an average APR of 15 percent on your credit card and carry a balance over for even a month, you’re paying more in interest than you are earning in cash back, paying for your purchase with cash saves you more, rather than signing up for the Credit card simply for the cash back rewards .
Are there Times I can use a Rewards Credit Card?
A rewards credit card is a good choice if you are already consistent in your budget and truly paying your balance off in full each month. Otherwise, you will not get the deal that you think you can. Remember, that you need to be financially ready to handle a credit card before you will enjoy the card benefits. If you are faithful in paying off your balance in full each month, then a cash back or a rewards credit card may be a good choice. So many people earn hundreds, or thousands of dollars each year in credit card rewards. It is very pertinent to note that one carefully read the fine print on your rewards card to ensure that you can really use the reward you are really earning.
Some Tips To Check if Credit Card Rewards worth it
- You are disciplined enough to pay your credit card bill in full each month.
- If you have an excellent credit score
- Willing to spend a certain number of hours researching the best redemptions offer for the rewards you earn
- If you’re organized enough to keep track of deadlines and offer details.
- Have enough vacation days to travel at least once or twice a year (miles rewards card)
- Free of consumer debt and credit card debt.
Tips that Rewards Credit Card might not worth It
- If you’re in Credit card debt
- It is hard to meet up with the minimum spending requirements on most rewards cards
- You are trying to rebuild your credit
- You don’t like the hassle of keeping track of offers or deadlines
- Do not like traveling
- One isn’t able to track time off much work