August 06, 2010
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News: Where Are My Rewards?
Do you have a credit card that earns rewards? When was the last time you spent or cashed in those rewards? If you haven't checked the fine print in your rewards program recently, you might want to do so. The credit card industry has experienced high losses with high card defaults which have prompted many card issuers to make changes in rewards programs. Nevertheless, there are still some lenders that are offering fair credit card reward programs. If you want to be ahead of the game, you will need to do your homework.
Inquire into any possible fees that the credit card company might charge when cashing in reward points. These redemption fees can run anywhere from a few dollars to hundreds. You'll also want to check to see if there are limits to how many points you can earn. Some credit card companies cap the amount of rewards you can accumulate during a certain time period; typically a year. Many reward points have expiration dates. That means that if you don't use the rewards during a certain time period, you lose them.
Cash back rewards are sometimes difficult to understand. Credit card companies that provide cash back rewards often use thresholds to allocate them. This means that you are often required to spend a certain amount on your card before they become eligible for redemption. You'll also want to check to assure there are no restrictions on maintaining any minimum balance on your card in order for reward points to be eligible for redemption
There are also some credit cards that do not have fixed guidelines for earning rewards. These types of programs award points with some purchases as a one point to one dollar while awarding higher number of points per dollar for other categories of purchases such as travel. This type of program works well for some people especially for those who tend to spend a higher amount of money in the areas that award higher rewards. Whatever you needs, you'll want to consider the best reward program for you when looking to open a new account.