Shop Before Opening a Rewards Card Account, Expert Says
People are using their credit cards more and more because of the difficult economy, and studies have shown that more people are participating in a credit card rewards program. Rewards program are usually for airline miles, retail discounts, cash back, shopping points or a variety of other benefits.
Studies have shown that most credit card holders takes advantage of rewards programs, which can earn extended warranties on purchases, shoppers discounts at retailers, airline miles and many other benefits.
Mellody Hobson, president of Ariel Investments and "Good Morning America" personal finance contributor, discussed which credit card reward programs are best for consumers when she visited the show.
Hobson also extended additional tips that consumers maybe useful for them to make an informed decision about whether to open a rewards credit card:
Buyer, Beware
1. Do your homework before you choose a credit card. Shopping for comparison is important. Hobson likes the information presented at creditcards.com or bankrate.com for more information on credit card rates , terms, and benefits,.
2. Do not open a credit card for the purpose of getting airline miles, discounts or other rewards with the intention of closing it later. Open one only one because you really need it, she said. Opening and closing a credit card lowers your credit score.
3. Examine your credit card statement each month to be certain that proper fees have been posted and you have received the correct points for your purchases. The best way to settle all of your charges is to save your receipts.
4. Regularly check the terms of your rewards program. Reward program terms frequently change, so be certain you know exactly what you are getting.
VIA ABCNEWS
Keyword: Credit Card
