Originally published February 27 2005
Credit card rewards programs are attractive, but usually have higher APRs
by Mike Adams, the Health Ranger, NaturalNews Editor
With credit cards offering all manner of rewards to their customers, consumers should be aware of how to make the rewards work. By only using one credit card, consumers can build up rewards more quickly than they would by using multiple credit cards. Also, consumers should be careful of cards offering rewards, since their interest rates are usually higher than those of regular credit cards.
Customer reward programs are becoming more of a factor in credit-card choice.
Reward cards allow you to earn redeemable rebates or points for purchases you make.
These aren't your typical store-sponsored credit cards - reward programs are offered by major credit-card companies and can be used anywhere.
Potential rewards include airline tickets, merchandise or fuel reimbursement, car rebates, cash back, investments or even contributions to a college savings plan.
Each program has different promotions and conditions regarding how you can earn and spend your rewards.
While getting something back for your purchases may sound like a good idea, be sure to do your research before signing up for a card.
Check the APR. Reward cards typically have an APR about 4 percentage points higher than other credit cards - around 14 to 16 percent.
Choose a rewards program that will give you back something useful.
If you just want cold, hard cash, look for a rewards program that will give you the most for the least amount of points.
You can't combine reward points from different cards, so try to limit yourself to one or two reward card programs.
Using multiple cards prevents you from racking up points toward any one reward.
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