Last Updated on

We are all bombarded by credit card companies of promised card rewards programs that promise user bonus points that we can take advantage of through: frequent flyer miles, rebates, cash back, discounted luxury cruises, free concert tickets, and so on and so forth. Most often than not, companies entice us with their "points per purchase" scheme. Collect enough purchase points, and you become eligible with their card rewards programs. It is important for card users to read the fine print carefully in choosing a credit card provider, and not base their decision solely on the heavily advertised card rewards programs.

Card reward points change in their value over time. It won't be a surprise at all that bonus points you've been diligently collecting because you're planning to cash in on one promised rebate or free item in their card rewards programs is almost equal to nothing by the time you've collected enough purchase points. Legally speaking this is not a crime, so be aware that the advertised value points necessary to cash in on a fantasy vacation package does not necessarily mean you will be eligible for such bonus item if you sign up today with the company.

This could be very frustrating for customers who sign up with a certain credit card company because of their enticing card rewards programs specifically for those who love to travel. A lot of times customers complain that even if they do become eligible for free flights, partnering airlines reportedly are also fully fully booked. So keep a very close watch on your credit card mails and check the "changes in credit card agreement" clause carefully.

It is also crucial for credit card users to take note that credit providers with card rewards programs usually have larger annual fees than regular credit cards. So if you're only keeping your card solely for emergency purposes, it would be best if you specifically stay clear of credit cards with rewards point programs. Devote some time in understanding your own needs as a consumer, if you plan on regularly using your credit card for many and frequent purchases, then subscribing to cards with purchase points is probably best for you. Paying the annual fee is alright if you get to earn bonus points with your many and frequent purchases with your card.

Another crucial point in deciding whether or not it's best for your lifestyle to subscribe to credit cards with reward points system is your ability or inability to pay the entire balance month by month on your part. If you are the type of credit card holder who pays your entire debt every month, then interest charges charged to you by credit lenders is smaller than most.

If however, you're the type who won't typically pay the entire balance for the month, then you'll be surprised that you will be charged higher interest rates especially if your card has the points per purchase option in it. On the other hand, if you're the type of user who makes sure you can pay the entire amount you owe within the month, then this type of card is best for you. You get to take advantage of the rewards point system and won't be affected at all by the bigger than most interest charge rates.

Do Credit Card Rewards Programs Honor Their Promises?

Do Credit Card Rewards Programs Honor Their Promises?