Wouldn’t you like to be rewarded every time you spend money? Well, if you apply for a rewards credit card, you may be able to get rewarded every time you spend money using your card.
Is there an annual fee?
Most credit cards these days will require you to pay an annual fee in order to keep using the card, so you need to find out how much the annual fee is before you apply for a new credit card. Generally, rewards credit cards tend to have higher annual fees than other credit cards because the customer will receive a lot of benefits by spending with the card.
If the annual fee that you are being charged for your credit card outweighs the benefits that you get throughout the year, then you may need to look elsewhere and find another card with a lower annual fee.
What is the monthly interest rate?
Another thing that people often forget to check before they apply for a new credit card it the monthly interest rate on repayments. Rewards credit cards tend to have higher monthly interest rates than other cards, so it is especially important to repay your credit card debt each month in order to limit the amount fees that you will need to pay.
If you don’t think you will be able to make consistent repayments each month, then you should reconsider applying for this type of card because you will be paying a lot more than you need to if you continuously put off repayments. To learn more about rewards credit cards and the different types of rewards available click here for more information.
Do the rewards benefit me?
When looking for a rewards card, you need to look at the benefits that each financial institution is offering you when you use your card and how that would help you. For example, if you are not a big traveller and the main rewards that come with your rewards credit card are related to free flights or accommodation, then you should look at a different rewards card that will give the things that you want.
Are there any other benefits for cardholders?
For some rewards credit cards, you will find that there are more hidden benefits to owning your card other than you would get with other credit cards. For example, some rewards credit cards will grant you access to airport lounges when you are travelling or offer complimentary travel insurance or concierge services, which is on top of the rewards that you already receive each month. Reading through your contract and identifying all of the benefits that you will receive from the credit card before you apply for it is the best way to ensure that you are getting what you are entitled to when you own a rewards credit card.
Will the card have purchase security insurance?
If you have never owned a credit card before, purchase security insurance covers you against loss, theft or accidental damage on goods that are purchased on your card. Most rewards credit cards and other premium credit cards will offer purchase security insurance, but some do not, so you have to make sure that you are offered this when you apply for your new credit card.
And although this is another added extra that you don’t necessarily need, having purchase security insurance on your rewards credit card will give you peace of mind to buy whatever you want whenever you need to.
There are many things that you need to consider when applying for a rewards credit card, so you will need to do your research before you make any big commitments.
The key is to figure out what you want out of your credit card and how you will benefit from the rewards offered before you apply for a new card. If you don’t do this, you could end up paying a lot of money a month for things that you don’t need, which will be a waste of your hard-earned money.