Credit Card Reward Programs
Question by I-Live-In-Leeds-Now: Why aren’t reward programs, like the ones credit card companies offer, NOT considered kickbacks?
Best answer:
Answer by Primo™
Because those rewards programs are actually scams
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Article by SAPerillo
When we buy things at a major retailer, were often offered a free ten percent discount. However, to take advantage of the promo, you first have to sign up for a store credit card. Usually, this is free. A lot of people fall for this kind of marketing, but did you know that signing up for store cards lowers your credit score significantly? It could even affect your chances of getting a mortgage with low interest rates.Retail store credit cards are also known as limited purpose cards. They can only be used at specific locations. What they dont tell you is that by applying for a stores credit card you may be lowering your credit score, because of credit inquiries. Inquiries are posted in your file whenever you apply for a new credit card from a different company. This may cost you points on your credit score, especially if youve applied for several limited purpose cards. This could cause you to move down risk levels, potentially damaging other transactions like mortgage loans.This is a tricky situation to be in, because theres no real way to get your credit card score up instantly. Youll have to earn your scores again, and wait for time to pass before you can actually get your score up. Sure, you have the option to remove the inquiries, but this is only legal if you were scammed. Fraud is the only instance when the inquiry could be removed. When you apply for limited purpose cards, they are legal even if you did them in a hurry.All you can do is play the waiting game. Since you have slim chances of getting those inquiries removed, it would be better if you waited them out instead. It usually takes about twelve months for the inquiries to clear up, so you can do some credit score handling in the meantime. Be very strict about paying your monthly installments so your credit score does not go lower. In about twelve months, your finances should be back in shape.Keep in mind, however, that youll have a small problem getting a mortgage with low interests. As your credit score goes down, your chances of going down a risk level increases as well. Should you decide to get a mortgage during this period, youll be paying more than you should, considering that you had a pretty good credit score to begin with. If this is the case, you have two options. First, you can continue with the mortgage. Youll be given a higher interest, but when your credit score recovers a little (when it goes up 700), youll be able to refinance your mortgage for a lower interest rate. If you really need a house right now, this is the best option. Your second option is to simply wait until your credit score is higher to avoid paying unnecessarily because of the high interest rate. At this point, you have no other option if you want to save up on money. This is also the option if youre not really in a hurry to buy a home.
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Article by John A. Klein
Credit cards companies are doing all sorts of things to get people to use their credit cards. Some launch money giveaways while others reduce credit card rates on a temporary basis to attract new customers. This may be intriguing for credit card owners in the early stages, but most of them want more. This is the primary reason why many companies offer rewards programs.
It’s hard to keep a customer committed to using a credit card on a regular basis without any incentives. Most card companies have high interest rates and costly penalties that are occurred whenever a payment is not paid in full. Factors like this may stop some credit card holders from using their cards on a regular basis. Companies are aware of this, and they offer credit card reward programs to persuade consumers to shop. It’s a great solution because it’s a two-way street. Credit card companies earn more revenues and customers get rewarded for shopping. Reward points have even been offered by banks for debit card users. This shows just how much popularity this concept has gained.
Article by Carrie Reeder
Credit cards can earn you cash, airline miles, or rewards. To get the most out of your credit card company, you have to choose the right program and use your card often.
Pick The Right Program
Article by Bluedebt
Everywhere you look there is a great new rewards program being offered to you if you sign up for a new card. If you’re walking in the Southwest terminal heading for a your Southwest flight there is a high likely hood that someone will approach you about signing up for that new Southwest credit card where a free flight is probably included. If you’re on a US Airways flight, you’ll find flight attendants hawking an opportunity to earn 30,000+ miles and a free flight if your fill out an enrollment brochure that they will gladly hand you and subsequently collect from you before your flight is over.You’ve likely received offers from the university you graduated from with a special offer just for you. The reward program offers are endless. Why is this so? That is because there are huge amounts of money to make off of consumers by incenting people to take on large amounts of credit debt. Credit card reward programs offer the perfect incentives for consumers to spend more than they can really afford. Before long all of that spending chasing a 0 “free” flight somewhere leaves many with ,000 in credit debt or more.In helping many people finally get out of debt through debt negotiation (also referred to as debt settlement) it’s always interesting to hear all of the different ways people ended with such large credit debt. For most people it’s usually a slow build up overtime and before they realize it they are burdened with large amounts of credit card debts, high interest payments, and large monthly payments just to pay the minimums.It’s such an easy trap to fall for one of the endless rewards programs. Keep in mind there is a very good reason the programs are marketed and offered so aggressively. It’s because the credit card companies end up making huge profits and the consumers suffer huge financial losses (i.e. they accumulate large amounts of credit debt).The only people who should take part in these reward programs are people who carry zero credit card balances and have a long history of doing so. Avoiding these programs may not seem like a “debt relief option”, but it actually is. It’s a proactive step to avoid one of the many credit “traps” most fall into.While choosing a debt settlement always read reviews of that companySo you can save yourself from getting fraud.
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With the increasing popularity of credit cards in America, it’s no surprise that credit card companies and banks continue to flood the market with all manner of cards–rewards credit cards, cash back credit cards, 0% APR credit cards–all in an effort to appeal to as many potential cardholders as possible by offering a wide variety of incentives for use. The major problem with the strategy, however, is that there’s often little explanation of exactly how credit card rewards work in their respective programs: what’s the difference, for example, between cash back cards and rewards credit cards? And which card will, in the end, save you more? The variety and sheer number of rewards programs leaves some potential cardholders confused about the actual market value of their “points” values.
The most prevalent credit card rewards plans out there today fall into two different categories — percentage-based rewards and points-based systems. The former offers a percentage of your money back on purchases in certain targeted categories, most commonly gas, travel, and in some cases entertainment. The latter offers a series of “points” for all purchases made, which can eventually be redeemed for reimbursements on various expenses, most commonly travel. The percentage rewards plans are fairly straightforward (except for a few obscure snags, such as how your cash actually gets back to you and how much you can earn in any given year through credit card rewards), but in the case of “points”, it’s often difficult to determine exactly what you’re getting for your purchases using a points-based rewards credit card.
Question by : What are the best credit card reward programs?
Best answer:
Answer by HonA
Capital One
Discover
Get the ones with no annual fees.
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A Current Affair does a segment on rewards programs, featuring some advice from CANSTAR CANNEX.
I am not talking about credit cards – so please don’t mention those.
I am looking to join rewards programs that are FREE to join and not a hassle. Mostly, I’d like to know about travel programs (airlines, hotels, etc.) I don’t travel much now because I am just out of school and don’t have a real job. But I want to travel the world.
Also any free shopping rewards programs? Right now I have a rewards card for Borders, Kroger, Best Buy, and Speedway.
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