Getting the Most from Credit Card Rewards
Posted at by ifydcat on category CreditCredit card rewards offer a range of benefits to people in all walks of life by offering a variety of incentives to use their cards. The credit card issuers seem to have thought of everyone at brought out rewards cards to meet different lifestyle and spending needs.
The best kind of reward credit card for you will depend on how you use your card. There seems to be rewards cards for every need and niche so your bound to find one meeting your needs and lifestyle. So, if you plan to use your card to make a lot of purchases, then the cashback option might be the one for you. If you are a regular traveller then a card with frequent flyer points, car rental discounts or travel insurance might work for you. Put simply, choose a reward card that reflects you lifestyle and your shopping habits when you make a credit card comparison.
Unless there is something very specific you want from a reward credit card, a cashback card is probably the best choice. These cards provide a credit on your next bill based on your purchases, typically around 1%. So if you spend $1,000 on your card, you get $10 back. So if you use your credit card a lot, this could be a good option.
When choosing a reward credit card it is a good idea to look at the card as a whole, and not just the reward aspect. Make sure the credit card will be good value for money and reward you after you account for interest rates, annual fees and charges. For example, 1% cashback is of little value if you are being hit with very high interest rate charges each month.
Like most products in the world of personal finance reward credit cards come with their own terms and conditions, so be sure to read the small print. Find out if there are limits to the amount or value of rewards you can accumulate each month; check to see if you have to claim rewards within a certain timeframe; and investigate whether there are certain situations or circumstances where you are not entitled to claim rewards. Ideally, rewards should be limitless and they should not expire, so keep this in mind when making a credit card comparison.
Also, be sure to use your common sense when spending with a reward credit card. Don’t get carried away and spend more than normal just to boost your rewards balance. Try to follow the golden rules that apply to any credit card – pay off your balance each month; don’t exceed your credit limit; and spend wisely.
Used properly and chosen wisely, reward credit cards can offer great benefits so be sure to shop around to find the right one for you.
Article by Richard from creditcardapr.com.sg which compares Singapore credit cards with rewards including RBS Switch card. Visit the site for more useful information or to apply online.