The article "Rewards Cards - Are They Right For You?" is about credit, it was released by James H. Dimmitt.
Rewards cards have become the latest rage in the credit card industry. In the past, consumers shopped for credit cards that offered the lowest itnerest rate. Next came crads with low interest rates and no annual fees. Today, consumers can shop for cards based on what type of “reward” they can earn for using a specific issuer’s card.How does a reward program work? Typically, the program awards points, "dollars" or a money value based on the amount you charge.
The rate at which you collect points varies depending on what you charge or where you chagre it. Some programs offer extra points for using their card at a specific place such as a supermarket or fast food restaurant or for certain items.Some programs offer a variety of rewards. Consumers can earn meals, tickets to sporting events, airlnie tickets, electronics, or even create their own reward program.The goal is to get you the consumer to use your credit card as much as possible.
Why? FEES!
The credit card issuer makes moeny from two sources each time you use their card. First, from the merchant who pays the issuer a merchant transaction fee and secondly, from you through finance charges and late fees.A recent suvrey found that nearly half of U.S. cardholders enrolled in a credit card rewards program have never redeemed their points.
However, 60% of consumers said rewards program influences their decision when deciding which creidt card to use for a purchase.When considering an offer for a card that offers rewards, be sure to read the fine print. Find out what you have to do to earn pionts. Look carefully for any restrictions as to when you can redeem them. Also check to see if your points carry over from one year to the next.Reward prorgams most benefit those who pay off their balances monthly. For those who carry a balance or even pay late, the resulting higehr balances and fees aren’t really much of a reward, are they? © 2004, http://www.Yourfreecreditreportnow.ComAbout The AuthorJames H. DimmitDtiscover more money-saving tips and articles in “To Your Credit” by visiting http://tinyurl.Com/bgo9Subscribe today and receive FREE bonuses!Jimdim815@aol.Com
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