Credit Rewards Cards: Are They Right For You? By: James Dimmitt Rewards cards have become the latest rage in the credit card industry. In the past, consumers shopped for credit cards that offered the lowest interest rate. Next came cards with low interest rates and no annual fees. Today, consumers can shop for cards based on what type of “reward” they can earn for using a specific issuer’s card. How does a reward program work? Typically, the program awards points, "dollars" or a cash value based on the amount you charge. The rate at which you collect points varies depending on what you charge or where you charge it. Some programs offer extra points for using their card at a specific place such as a supermarket or fast food restaurant or for certain items. Some programs offer a variety of rewards. Consumers can earn meals, tickets to sporting events, airline tickets, electronics, or even create their own reward program. The goal is to get you the consumer to use your credit card as much as possible. Why? FEES! The credit card issuer makes money from two sources each time you use their card. First, from the merchant who pays the issuer a merchant transaction fee and secondly, from you through finance charges and late fees. A recent survey found that nearly half of U.S. cardholders enrolled in a credit card rewards program have never redeemed their points. However, 60% of consumers said rewards program influences their decision when deciding which credit card to use for a purchase. When considering an offer for a card that offers rewards, be sure to read the fine print. Find out what you have to do to earn points. Look carefully for any restrictions as to when you can redeem them. Also check to see if your points carry over from one year to the next. Reward programs most benefit those who pay off their balances monthly. For those who carry a balance or even pay late, the resulting higher balances and fees aren’t really much of a reward, are they? About the Author: © 2005, www.yourfreecreditreportnow.com Author: James H. Dimmitt James is editor of “To Your Credit” a FREE weekly newsletter focusing on managing your personal finances and credit. Subscribe and get a FREE copy of your credit report when you visit: www.yourfreecreditreportnow.com

Inside Finance Credit Card For Low Interest Rate   A low interest rate would almost always mean that using the credit wouldn’t eat up your savings. One of the strategies of many banks and credit card companies to attract members is to offer an introductory low interest rate then hike up the rate after a certain period. It is therefore advisable to inquire how long the initial low interest rate would last. Get Out Of Credit Card Debt   With the help of the loan we can get out from a credit card debt. Work out an agreement with your creditors to pay off your credit card bills at a reduced amount. Debt negotiation is a more aggressive approach to getting out of debt (usually, you must be behind on your payments to get the creditors to agree to a settlement), and is not necessarily right for everyone. Government Benefits And Reverse Mortgages   Reverse mortgage have many benefits. This double whammy is what makes home ownership so attractive. As time passes, the equity in your home is reduced, but you have a solid and predictable monthly revenue source. Business vs. Personal   This article deals with information about Business vs. Personal. One of the first steps to do this would be to track your monthly expenses on a daily basis in order to adequately determine your actual personal costs. Be sure to include buffers for emergency or surprise expenses. Once you have a clear idea where your monthly expenses go to, you can then create a budget for the period that your income may be affected. It may also be a good idea to pay off any outstanding debt such as home loans or car loans, so that you have less to pay for during the critical period. Overly Obsessive About Stock Market Investments   Stockaholics are people Overly Obsessive About Stock Market Investments. As approximately 50% of U.S. households directly or indirectly invest in the stock market, it is likely that there already exists a goodly number of undiagnosed stockaholics.