Rewards Cards Are Great, But Read The Fine Print
Do you have lots of Reward cards? Maybe you’re just thinking of getting some. Before you do, be sure to read and understand all the terms and conditions. According to a survey by the Braun Research group, one third of all cardholders either don’t read or don’t really understand the fine print on their card agreements. If you’re among their number, speak with customer service until you feel confident about the terms you are agreeing to. If customer service can’t help you, there are plenty of competitors out there with better help lines. Take your business to them.
If you do decide to go for a rewards card, expect to pay a lot of money in order to reap substantial rewards. 5% cash back incentives are dying down, and 1-2% is now typical. But some cards have great rewards for specific needs, like pet care, online shopping, or special events. The new Sotheby’s MasterCard offers a birds eye tour of California’s vineyards, via helicopter. Card holders can also earn the use of an official Sotheby’s auctioneer to hold a charity auction for them.
Finally, to maximize rewards benefits, avoid being a ‘revolver’ – the industry term for card holders who carry a balance from one month to the next. If you’re paying 15% interest on your purchases, 1% cash back isn’t going to help much.
