Consumers with excellent credit, regularly receive credit card offers that come with impressive rewards. When these perks are suited to your spending habits and can be exploited to their full potential, you’ll be able to save drastic sums of money over the course of the year. Still, many consumers can be a little wary of credit card rewards, fearing that somehow they’ll lose out in the long run through fees or higher interest rates. In this blog post, we’ll explain why the numbers clearly fall on the side of credit card rewards.
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Why Rewards Trump Fees
One of the largest misconceptions surrounding credit cards is that it’s never worth it to pay an annual fee. The truth of the matter is that even credit cards without rewards frequently come with an annual fee, which means that you won’t be saving any money by passing up a rewards card. Moreover, many rewards cards waive the annual fee for the first year, enabling you to save exponentially more than the fee before even being charged. Furthermore, the signup bonuses that are typically offered to consumers are significantly larger—sometimes hundreds of dollars more—than the annual fee, so you’ll end up saving big.
Worried About Interest Rates?
Another concern that comes to mind when weighing the benefits of credit card rewards is whether it’s worth dealing with a potentially higher interest rate. Here also, there is a great deal of misinformation. First off, most of the good rewards cards come with a very generous 0% APR introductory period. That mean as long as you pay your balance before the intro period is over, you’ll never even see those high-interest rates. Additionally, after the intro periods are over, as long as you pay your balance in full each month, you won’t have to pay interest anyways. If you are the type of person who doesn’t carry a balance on your credit card, interest rates won’t affect you.
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Your Needs, Your Rewards
Whether you’re looking to save money on big ticket items like hotels, airfare, and vacations, or you’re simply trying to save some extra money at the gas pump, there’s a credit card out there suited to your needs. Plus, with great cash back offers that will help you earn bonus rewards by making purchases in certain categories, it’s never been easier to rack up credit card points that can be redeemed whenever you’d like.
Some consumers feel that they won’t be able to take full advantage of their rewards, but there’s actually a large amount of flexibility and choice when it comes to choosing a card. This makes it easier than ever to ensure the credit card is ideal for your needs.
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Conclusion: Rewards Win Out Big Time
When you consider all of the factors and crunch the numbers, the math is clearer than ever: credit card rewards can save you a sizable amount of money every single month of the year.
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