Don’t Choose Credit Cards for Their Reward Programs

When you’re in the market for a new credit card, you may be lured from one card to the next by special offers, low fees, and reward programs.

But you should recognize that the most important factor in selecting your credit card should come down to fees, including APR on purchases and balance transfers. Don’t choose a credit card simply because you like the rewards program.

You could end up paying fees that eclipse the benefit of the rewards that originally enticed you. And if you are likely to carry a balance, you’ll find that rewards cards often have higher APR than standard credit cards.

Take a look at most credit card rewards programs and you’ll notice that most charge an annual fee, and most have caps on what you can earn in cash back rewards. Others may offer points with an expiration date or blackout dates for peak travel dates.

Make sure you look at all the fine print to ensure your credit card choice makes sense. While rewards are tempting and may look like a good deal, they could land you in more hot water, and leave you with little more than a few bucks in gross savings, before associated fees and higher APR are even applied.

Related Topics:

1. What Credit Card Has the Best Rewards?
2. American Express Cards With No Annual Fee
3. Don’t Overextend Yourself with Large Credit Card Payments
4. 0% APR Credit Cards
5. Use Credit Cards for Automatic Billpay