Credit cards that are available today offer many different types of programs to their customers. These programs are often referred to as a rewards program and are becoming more popular. These rewards programs work for some people and some times they do not work for others. It is important that the consumer does their research to be sure that the rewards will fit their financial situation and their budget.
What Is A Credit Card Reward Program
A credit card rewards program is a program that will offer the consumer rewards of different kinds just for charging on their credit cards. Every credit card company that offers a reward program will have different types of rewards as well as different rules on how to earn the rewards as well as spending or cash in the rewards. Most of the time these rewards are not the best idea for consumers who pay their balances off every month. These programs should be aimed at the consumer who carries a balance on their credit card from month to month.
Types Of Reward Programs
One of the most common types of reward program is that that will offer an introductory annual percentage rate. This will often involve purchases with a certain annual percentage rate for a time period such as a year. Of course if the balance is not paid off in that year’s time the original interest rate of the card will be used from the date of the purchase. This is usually printed in the fine print and many consumers do not read that and get stuck with a large amount of interest in the end.
Another type of incentive that is spoken of in the form of a reward is a zero percent interest rate on a balance transfer for up to a certain amount of months. Fifteen months is the most popular. Once again if the balance of this transfer is not paid off within those fifteen months the interest will be calculated from the original percentage on the credit card.
One other rewards program that is becoming increasingly popular is that of a travel reward. If you as the consumer travels frequently this could be beneficial to you. Most of the travel rewards credit cards are partial to one airline to travel on. These travel reward credit cards have many different advantages such as cash advances to be used while you are traveling as well as special incentives for those who are frequent fliers.
Credit cards that can be used to purchase gasoline can also have great rewards when used properly. Many will offer low interest rates or even a certain amount of money off of the cost of the gasoline.
It is important for the consumer to do an annual review of their credit card rewards. This is because some of these cards will offer a high interest rate to help cover the cost of the rewards. If the card holder is not using the rewards they are given it is not beneficial for them to keep paying fees as well as high interest rates for the next year and years to come.
Janice Thompson likes to write fiance based articles. She has been writing since a long time on different subjects like credit card, loans for bad credit, debt, insurance etc.
In this fast-paced world we live in today, you can do almost anything from anywhere as long as you have internet access and a credit card. In the past, you would have to go through a travel agent to book a vacation, now you can simply log on and purchase a full vacation online. Basically you can buy most any item from wherever you are provided you have a credit card. Back in the day, you would have to apply for a credit card by phone or via mail. It could take weeks just to find out if you had been approved or not. Then possibly another few weeks to actually recieve your new credit card. And while waiting, you would have no credit card. Nowadays, you can apply for many credit cards at once and have almost instant buying power.
Years ago, the actual credit card application process was lengthy and drawn-out. Since the emergence of the internet, everything is totally different. Now, you can apply for multiple credit cards at once. There are many different instant approval credit cards available which can be found by doing a quick search online. But before you go applying for every credit card online, it’s worth it to take a few minutes to compare things such as: the credit card’s interest rate, late fees, grace periods, rewards programs, and application fees.
More and more credit card companies are adopting a reward program that offers a cash back incentive. This means that for every dollar you spend on the card you receive a percentage of the money back as a cash reward at the end of the year. This amount can really add up, if you use that card frequently. Some companies offer rewards such as: enhanced security features, designing your actual card, and low apr’s (annual percentage rates).
If your credit is not good you may think that you can’t qualify for any credit card or loan for that matter. With the economy in it’s present state, it may be true that some financial companies are looking a lot more closely at an applicant’s credit than ever before. However, there are many instant approval credit cards for people with bad credit. These cards can actually play a role in helping the person improve their credit score. The major difference with a credit card for someone with a poor or bad credit rating and someone with a perfect score is a security deposit and/or application fee. This basically means that if you have bad credit, the credit card company may require you put a deposit down and that amount will be what your credit limit is. This means that if the customer gave a deposit of $500, the card’s spending limit would be $500. When you are granted one of these instant approval credit cards, you won’t be able to use it until the security deposit had been received by the card issuer, they will then credit the amount to your card and you could begin using it.
There are other credit cards that may require that you pay an application fee usually ranging from anywhere between $5 to $50 depending on the company. They will then offer you a credit card with a low credit limit, say around $300. If this is the type of credit card you decide to go with, be sure to read the terms which state late fees, annual fees (if applicable), etc. Sometimes, these companies will charge an annual fee and application fee but deduct it from your $300 credit limit. This would reduce your credit limit right away, and by the time you receive your card in the mail, the fees have already been deducted. For example, if your credit limit was $300 and your application fee is $50, and the annual fee is $75, then when you receive your card your actual spendable credit limit would be $175. So, as soon as you get your card you would already be owing the company. This may sound like a rip-off, but for those that have bad credit this may be one of the only ways to get a credit card. And once you pay your monthly bill you would start building your credit. So, basically you would be “paying” for credit.
Regardless of which credit card you choose to apply for make sure read the fine print and the terms section where they state the fees and percentages. If you follow some of the tips you will be well on your way to multiple instant credit card approvals.
Getting the Right Rate Can Save YOU Thousands
A credit card debt can be like the worst sort of trap. Like a wound that won’t heal, a monthly minimum payment – with ceaseless regularity and endless strain on your budget – leaves your account. It’s to pay for the Christmas shopping, or the last July 4th party, or your holiday two years ago. You don’t know; frankly you care less – you just want to see it gone. But when your next statement arrives, the hole your minimum payment should have burned in your debt is no smaller – the sore remains unclosed.
Is this situation familiar? Is it you?
If it is, you’ve not heard the worst of it yet. The way that credit card companies exist and thrive is by exploiting your debt burden. They’ll lend and lend and lend, until you get to the point that the most you can pay back each month is the minimum payment – usually around 2.5 per cent of the balance. The problem with this is that they hit you with a load of interest, sometimes amounting to 2 per cent of the balance. If only one half of a per cent is being paid back it doesn’t take much math to figure out the amount of time it could take you to pay back your debts.
In fact, if you’re paying repayment insurance, in some instances you can pay back less than the amount of debt accumulating.
It’s a horrible, self-perpetuating cycle of hemorrhaging money, but the good news is twofold.
First off, you’re not alone. Thousands upon thousands of decent, hard-working Americans are in this position through no fault of their own but necessity and the demands of modern living.
Secondly, if you’re stuck in this horrible cycle of bleeding money, the chances are that it can be at least partially redressed. Many Americans have – and still do – unwittingly signed up to credit card deals that are uncompetitive, over-priced and unnecessarily expensive. What many don’t realize, is that simply because you have pledged allegiance to a particular credit card company doesn’t mean to say that you are stuck with them for life. There’s a way out that can save you hundreds, if not thousands of dollars a year and help you pay off your debt burden more quickly.
Transferring the balance of your credit card to another one is a way of paying off your existing debt with a new credit card that you take on at a cheaper rate. In many cases this can be set at 0 per cent for a period of a number of months, before reverting to a higher rate. By switching to such a card – and then another at the end of the interest free term, and maybe even another after that, it gives you a clear run at reducing your debt, without it spiraling ever further upwards. Even if you’re still only paying 2.5 per cent off the balance a month, far better to do that than knocking off one half of a per cent, or less.
By bundling up the old expensive credit card debt, getting rid of it, then paying back the new credit card at a lower rate, you can save countless dollars each month. You can save even more money by paying a bit more each month, thus clearing the debt in a shorter time. By doing this you’ll free up more dollars further down the line enabling you to spend them on something really nice.
Unfortunately, 0% deals are not always available to all customers. If you’ve got a credit rating that’s in some way below scratch, it is probably unlikely that a 0% credit card will be made available to you. It’s a sad fact of finance that the best deals seem to always be available for those who need them the least.
That said, there are a number of other excellent credit cards on the market through which you can save many dollars. Even if a balance transfer rate is as high as 10 or 12 per cent, if you’re paying upwards of 20 per cent on your existing deal then you’re clearly going to save a stack of money – even if it’s not as much as you might have liked.
If you’re concerned about how much you’re paying each month on your credit card repayment it certainly pays to check out your existing interest rates and compare them to some of the balance transfer rates available at competitors: it’s almost a certainty that you’ll save yourself more than a few dollars.
Even if you’re not worried about your existing credit card deal, it’s worth checking out the market to see if you can get a better deal. Complacency doesn’t pay, but a bit of awareness can save you a lot.
Ethan Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at http://www.creditcardunlimited.com
Written by: Ethan Hunter