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Wednesday, June 25

Common Myths about Credit Cards with Rewards



Credit cards with rewards have gotten a bad reputation over the years. Between credit card debt to lack of good or useable rewards, many people have been turned off to the idea of credit cards. They see credit cards as a negative thing and will not even consider them as a viable financial option.

It is unfortunate how many people misuse, or even don’t know how to use, credit cards. I have seen many people greatly improve their financial standing by using credit cards,” says Chris Mettler of CompareCards.com.

Maybe it is time for you to reconsider credit cards as well? Here are some common myths about credit cards with rewards to help you decide.

Applying for a credit card with rewards lowers your credit score

Many people think that every time that you apply for a credit card with rewards, it will negatively affect your credit score. In reality, this is only true if you are applying to numerous cards on a regular basis. If you do your research and pick a card that works best for you, applying for it shouldn’t affect your credit at all. Just don’t fall into the trap of applying for every credit card offer that comes your way.

You earn the most rewards when you carry a high balance on your credit card

Most points rewards systems don’t necessarily earn points based on the balance that you are carrying on your credit card. The points that you earn towards rewards are based on the money you spend and where you spend it, no matter what balance you have on the credit card. The only stipulation with some cards is that you cannot earn the rewards if you pay off the credit card before the monthly statement it up. Otherwise, you should always make regular payments to your credit card to earn rewards and keep a good credit standing.

You will never really use the rewards that you earn on your credit card

The key to using your credit card rewards is knowing how to redeem them and actually use them. You will have to read the fine print for your credit card, but that time spent will be well worth it when you are spending your rewards.

It is also crucial to get a credit card that give rewards that you will want to use. Many people sign up for things like airline credit cards, but then never fly with that airline, so they never earn the points that they could be earning otherwise.

It is impossible to earn the rewards that credit card companies promise you

Of course, credit card companies advertise the best possible scenarios that will earn you the highest points, but that does not mean that those scenarios, or other equally outstanding ones, are not possible for you. If you follow the guidelines for earning points with your credit card, you can earn a large amount of rewards on the things that you buy every day.


Photo credit  - http://www.lifehack.org/articles/money/7-common-myths-about-credit-card-rewards.html

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