Friday, October 24, 2014
Potential pitfalls with reward cards
We all like to be rewarded.
But when it comes to credit card rewards programs, are we really getting a good deal?
Before signing up for any rewards program, read the fine print and proceed with caution, says Tami Rechtenbach, vice president of member services at Dupaco Community Credit Union.
While the promise of a reward can be enticing, many reward cards come with potential pitfalls:
"If you are going to use a reward card, pay it off every month and don’t get caught in the cycle of letting that debt rise and not being able to pay it off," Rechtenbach says.
Sometimes, the best rewards come with cards that aren’t labeled as a “reward card.” Dupaco’s VISA credit card, for instance, rewards its cardholders every day with a low-interest, variable rate; no annual fee; grace period before interest is charged; and other perks.
By Emily Kittle