 Wysłany: Sob 11:18, 12 Mar 2011 Temat postu: choo 8220 |
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| Advantages to Using Credit Cards with Reward Programs
Using credit cards wisely is part of an overall financial plan thatshould include budgeting, savings/investment, debt management andinsurance. In your economic life, money is ��fungible, �� meaning that allthese areas are interconnected, and a dollar saved in one area can bespent in another. It all comes out of one ��pot, �� so to speak, so anytime you reach into that pot for more than is budgeted, you will affectyour entire financial plan. That said, there are ways tosave money on credit cards �C shopping around for interest rates, getting cards with no annual fee, paying your balance off monthly �C butthere are also ways to makemoney with them. This is where rewards and/or ��points�� programs comeinto play. Remember, though, that credit card companies do not promoterewards programs out of kindness or on a whim. They do it because theycan make money doing so. Therefore, you need to know how rewardsprograms work, and have the discipline to work them to your advantage, or they will just be another expense to you, regardless of theoccasional item you get to trade points for (and it may even come in abox with ribbon on it). Rebates vs. points When considering what credit card reward programs to join, make sure toresearch the subject well and think it through. You also need to ensurethat the type of program you choose fits your lifestyle andtemperament. If you are a bachelor, you don't need a card that buildsrewards points at "Baby & Boo's Clothes for Youths" or anythinglike that. You should get reward cards whose advantages that are ofreal value to you, and valuable right now, not in three years. Naturally, the primary advantage of a rewards program that iswell-managed (by you and by the credit card company) is the fact you will be obtaining benefits worth more than the programs cost you. The two most popular rewards programs are (1) accumulating pointstoward merchandise or services and (2) getting cash rebates, usuallyannually. The Discover card is famous for its rebate programs, but thefact is that there are a number of limitations and you have to workdiligently to get anything close to the maximum 5% annual rebate. Othercards, from Visa and MasterCard to oil company cards, have rebateprograms, too, but most often have points-based rewards programs thatare geared to travel or shopping. You need to make this decision, cashback or points, when deciding among the credit cards and rewardsprograms in effect today. Tailoring the programs You may decide that you want a ��cash back�� card or, better yet, onethat does not offer just cash, but also gives you the option of takingrebates in the form of gift certificates or cards. Sometimes, for extraincentive, gift certificates that are used at specified businesses canresult in up to double the cash back. If you are a big fan of gettingreal ��bang for your buck, �� then you should consider getting a creditcard that offers these expanded choices. Rewards programs in which you build up points can be advantageousespecially when used for travel redemption. In fact, among the veryfirst credit card rewards programs were some that let you build up��miles�� for use with certain airlines. Today, of course, you can domany more things with your points, and anything you want with yourannual cash rebates. Programs run by the different credit cardcompanies share a number of basic characteristics, of course, but thenoffer incredible variety when it comes to how they operate, what theycost and what they really offer in value. Making the choice(s) Whatever rewards program you join, read all the fine print. Make sureyou understand what purchases are not qualified, that is, do not earnyou any points or rebates. There will always be exclusions. Some cardsoffer rewards programs with no annual fee, while others will waive thefirst year��s fee if your spending reaches a certain threshold, but itis very hard to get a no-fee program unless your credit is excellentand your purchases add up to a hefty number. You should take the time to crunch a few numbers to see if joining arewards program or two is worth your while. The annual fee, theinterest you pay, the amount you use your card �C all of these willaffect your total cost of membership, and your benefits need to exceedthe cost or you will simply be handing over extra money to the creditcard company and the bank behind it. Talk to some friends or coworkersabout their experiences with rewards programs, and interpret what youhear in terms of your own needs, buying patterns and financial status. The last thing you want to do is make the rewards program a reward forthe credit card company instead of yourself! Credit Cards Made Simple provides information on helping you make the right choice when choosing low interest credit cards and understanding the credit card processing companies.Topics related articles： choo 8768 choo 1815 3147 |
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