Get Great Rewards with Your Credit Card
Credit card companies have become extremely generous by giving consumers some great rewards when they use a particular card. There are rewards for airline miles, cash back and many other exciting possibilities. There are many advantages and disadvantages to the credit card rewards system, so you must be a wise consumer before getting too involved in the process.
One of the biggest advantages to using these types of credit cards is definitely the free things that you can get when you use the card. Each individual credit card is different, so you must make sure that you know what you are going to get before you rack up the dollars on the card. Many of the better rewards offer free airline miles when you spend a certain amount of money. Other companies offer a percentage back off all of your purchases. It is possible to get up to 5 percent back on all of your purchases if you have the right program in place. This is like getting five percent off the price of everything that you purchase.
Another positive aspect of these cards is that you will likely pay them off when they are due. Some studies have shown that people get into less debt when they use these cards because they actually want to get the rewards without having to pay interest. In most cases, if you have to pay any interest, you actually lose the true benefit that the card provides.
The biggest drawback is the fact that you may overspend on the card to get the rewards. This could lead to many problems in the future, and you may not be able to repay your debt in a timely fashion. It is possible that this credit card debt could spiral out of control and actually have a very negative impact on your financial situation.
The other negative feature could be any extra fees that you have to pay for the card. You may be charged a monthly or yearly fee to have the card, or you may have to pay a certain percentage of interest on the rewards themselves.
There are some great rewards with many credit cards. You simply need to be a wise consumer and repay the debt as soon as you get your statement, or you may find yourself in much more debt than you ever expected.