4 Things Every Millennial Should Consider When Comparing Reward Points Card Offers
Rewards credit cards make you feel worthwhile to spend money by allowing you to earn 1 or more points for every dollar spend. The accumulated points can be used for exchanging different kinds of stuff such as cash back, and statement credit. If you do research at a credit card marketplace, you will find that several major credit card companies have issued rewards credit cards. Every rewards credit card is different so it is necessary for you to compare their features. The following are 4 things that you should take into consideration when performing comparison on rewards credit cards.
1. Know the Value of Each Rewards Point
The first thing that you should check is how much each point is truly worth, for example, each point may be equal to 1 cent or slightly more. You can find out this information by asking the credit card company. You should select the card with the rewards program that offers the most value for each dollar you spend.
2. Check for Restrictions on the Card
Secondly, you must find out if the card imposes any type of restriction. For example, the card may have an expiration date for you to redeem the points. Knowing the expiration date is important as it allows you to plan how much you spend to accumulate the right mount of points just before the date for the redemption of the rewards points expire. There are some rewards cards that do not have expiration date for the rewards points. You also have to check if the card has any restriction on how you can redeem the rewards points. For example, some card will set rules on the dates and airlines that you can book when using your miles points.
3. Check the Interest Rates and Fees
Thirdly, you must check the rewards card interest rate and the fees. They should not be too expensive so that you will still earn from the rewards points you accumulated when you use the card to buy things. Some of the fees commonly charged by a rewards card include annual fees, foreign transaction fees, late fees and penalty fees. It is recommended that you can clear your balance in full at the end of the month. If you did not clear the balance in full at the end of the month, you will have to make a minimum repayment and pay the interest rate.
4. Check the Minimum Credit Score Requirement
Fourthly, you will want to check with the credit score requirement of the rewards card before signing up. Rewards cards with high quality rewards programs usually requires good or excellent credit score. The credit score requirement shown on some of the popular comparison website may not be accurate and you can call the credit card company’s hotline to find out the minimum credit score requirement. In this way, you can prevent getting rejected by the credit card company.