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rewards program. Credit cards that offer rewards usually carry
hefty interest rates (APR). With high APRs, a balance not paid in full before the grace period is over, eliminates any reward you may get. In addition to
high interest rates, credit cards with reward programs have complex rules, restrictions and limits on how much a consumer can earn.
In picking a credit card with a rewards program, there are things to consider:
1. Where you shop often - Get a card that will earn you rewards in a store you do most of your shopping.
2. Do the math - Calculate how much you will likely spend on your credit card, and convert
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that into cash back or points. If you would like an item
(a digital camera), find out how many points you will have to rack up to get it and see if what you spend would be worth the rewards program.
3. Pay bills on time - Credit cards with rewards programs carry high interest rates. If a balance is carried over, interest you will pay may not
be worth the reward.
4. Use rewards fast - Airline and store policies change quite often, if you rack up enough miles or points use your rewards fast.
5. Opt for cash back - According to consumer reports, credit cards that offer cash backs tend to be more generous in rewards.
When to Pick a Card with a Low Annual Percentage Rates
If you plan on carrying a balance from month to month on your credit card, apply for a credit card with a low APR.
In Summary
Before you apply for any credit card, evaluate your financial habits and needs to ensure you are maximizing the benefits of your credit card.
Understand all terms and conditions of your credit card. If you do not find a credit card that fits your needs, call the credit card companies,
you might just be able to create your own customized credit card.
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