Credit Card Rewards Things To Look For When Comparing Credit Cards Let’s Talk About Money tm By: Paul Barton & Barry Spilchuk http://www.talkaboutmoney.com/index.html?img=35&kbid=1043 Whether you like or dislike credit cards, not having a credit card in today’s society can be inconvenient in certain circumstances. For example, without a credit card, booking a hotel room, or renting a car can be difficult. The negative perception surrounding credit cards is often held in conjunction with stories one might hear about massive credit card debt caused by “out-of-control” spending. Credit cards were originally intended to make life more convenient for consumers, by recapping all purchases on one statement to be paid monthly. Somewhere along the way, the idea of carrying a balance on credit cards has become the norm for roughly 38% of Canadian credit card holders, according to Statistics Canada. Despite what you may think of credit cards, if used properly, they may actually provide benefits and rewards for many things, such as; insurance, travel rewards, or merchandise. Zellers is an example of a corporation using a rewards program with their famous Club Zed points, where consumers accumulate points for purchases made, and then redeem these points for merchandise. Today, credit card companies compete with each other by offering various reward programs in attempts to earn your business. Some of these programs are quite good! One couple told us they used their credit card to finance the construction of an addition to their home, and then took an equity mortgage to pay off the credit card balance. The accumulation of points obtained by using the credit card allowed this couple to take a trip to Hawaii, all paid for from the reward points on the credit card. When deciding which credit card to use, it’s wise to compare features and benefits on various cards before choosing one that suits your needs. One web site we visited, (www.creditcardfreedom.com) covers various credit cards issued in the U.S., and allows one to compare credit card options. There may be other worthy web sites to access for such information, this just happens to be one that we found. Regarding credit cards that offer travel reward features, here are a few thoughts to consider when comparing various cards: Ø How are reward points obtained? One point for every dollar spent is certainly better than cards that offer only one point for every $10.00 spent. Ø Is there an expiry date on the reward points? Some programs require you to use your points within a certain time period. Ø Is there a limit to the number of points that can be earned per year? Ø Are there blackouts (Times in the year when you can’t use your points to book travel) or restrictions on selected airline tickets, car rentals, or hotel reservations? Ø Can reward points be applied and/or used in conjunction with other frequent flyer travel programs? Apart from the reward programs offered on various credit cards, you may also want to compare some of the main card features, such as: Ø What interest rate is charged on purchases? (Watch out for low introductory rates as higher rates may apply after a few months) Ø Annual fee – How much is it? Ø Is there a co-applicant fee? Ø Payment grace period – how many days from point of purchase do you have to make a payment? Ø Is there a fee to transfer an outstanding balance from another credit card? Ø Are there fees to take cash advances? Ø Are there fees if you go over your credit limit? And finally, regarding the added perks on credit cards, some of the more common benefits to be aware of include, but are not limited to, the following items: Ø Lost & stolen card reporting - emergency card or emergency cash replacement Ø Roadside assistance Ø Extended warranty on purchases Ø Auto rental insurance – discounts on car rentals Ø Travel accident insurance Ø Lost & damaged luggage insurance Ø No liability for unauthorized transactions When deciding which credit card is best for you, if possible, try to think about how you intend to use your credit card. For example, those that plan to use a credit card for purchases, and are not interested in any of the reward programs and/or benefits offered by credit card companies, then searching out low-interest rate credit cards with low, or no, monthly fees would be appropriate. Taking the time to check out the various fees and features on the numerous credit cards available may save money by you not paying for things you don’t, or won’t, need. “Everyone is the architect of his own fortune!” Abbe Regnier ** You must join Talk About Money and read more articles here... http://www.talkaboutmoney.com/index.html?img=35&kbid=1043 © Copyright 2003 – Let’s Talk LLC & Paul Barton