What to Look For In a Cash Rewards Card

By Leni Parrish on December 27, 2009

Not all credit cards are for spending. There are some that you can actually use to pay off bills or purchase items which earn more reward points. Because of this, a cash rewards card has been a practical choice for people who do not travel a lot and do not use money for gasoline purchases.

Basically, it is a credit card that allows you to accumulate points for every transaction that is made. Whether you used it for shopping or for paying off the bills, points are added up to your tally. In return, these points can be used to redeem free items or even discounts on future transactions.

Now that you are interested to get one, here are some guidelines to help maximize your cash rewards card. First, it will not hurt if you will do a comparative study on these cards. There are websites that allow you to compare one reward card from another by showing their fees, interest rates, and reward system. From here, choose the card which suits you the best.

Next, be aware of the rules that the credit card entails. These cards have different policies when it comes to collecting and redeeming points. The guideline booklet or leaflet that comes with your card might be extensive, but reading it thoroughly will benefit you.

By reading the guidelines, you will have a clear picture on how to earn points and redeem them for reward items. Browsing through the guidelines will also help clarify certain restrictions that the credit card might have.

Third, use it in any way possible. It is obvious that you will earn more points if you will shop with your cash rewards card more often. Yes, use your cash rewards card for as many purchases that you want, but be aware of the balance that you have to pay.

Since this is still a credit card, you would still have to pay its balances. If you are not paying on a regular basis, the interest piles up, which results to a higher balance fee. To gain more savings from your cash rewards card, you must always pay dues on time.

However, if you cannot avoid paying after the due date, a late penalty fee will be added to your paying balance. To prevent this from happening again, be aware of the payment timeframes that your credit card or cards have. If you are always tagged as a late payer, you will not be able to maximize the rewards that your card can bring.

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