Credit Card Rewards That Don’t Reward
An interesting article from WRAL.com asks the question:- “How rewarding are credit cards that promise rewards?”
It’s a very good question and in my experience the answer is that some are more rewarding than others.
This is backed up by Consumer Reports who have recently sized up credit-card reward programs and found some good ones. For example Blue Cash from American Express is thought to be among the best US based cash-back cards, although it’s patently not suited to everyone..
According to WRAL.com:
“Consumer Reports urges people to be aware that card companies offering 5 percent cash back on purchases usually have restrictions. The American Express Blue Cash card, for example, offers 5 percent back only after a cardholder has spent $6,500 at supermarkets, gas stations and other locations. Likewise, the Discover Open Road card gives 5 percent back on gas and car maintenance only for the first $1,200.”
Tobie Stanger of Consumer Reports advises that:
“It’s important to know the specifics of your card and keep an eye out for any changes in terms, also everybody must size up which card is best for them.
You have to understand the terms. The credit-card companies have become very creative, and the terms can be confusing.”
Tobie Stanger goes on to say:
“If you regularly carry a balance on your credit card, don’t even bother with these cards because the finance charges will eat up any rewards. But if you pay your balance every month, they can be great”.
The story is always the same. Pay your balance off at the end of the month…
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