Reward credit card is a type of credit card that mainly offers more reward features than other types of credit cards. This credit card reward assessment is based on the use of the cardholder’s credit card. The following are some things that you should consider about credit card rewards.
What You Need To Consider When Apply?
You should look for the most valuable reward from a product. Imagine yourself is an investor who is looking for the highest interest, including registration bonuses and rewards from usage.
In addition, you can look for other benefits that do not come from the side of use, such as travel insurance, purchase protection and benefits from travel providers.
For example, most airline credit cards now offer travelers some form of priority service or reduced baggage check fees.
Which You Should Avoid When Apply?
Credit cards that offer rewards can be very valuable, but there are some disadvantages too. For example, credit card rewards can have high annual fees, which may not be suitable for credit card holders with a simple lifestyle.
In addition, rewards can be in the form of points and miles which is certainly quite troublesome to redeem. For example, many airlines provide very few seats for mileage awards, even in the lowest class.
Should I Apply More Than One Credit Card?
The prospect of collecting credit card reward points can be very interesting, so you might be tempted to open more than one credit card account. This strategy can be useful when you find some extraordinary offers.
First, applying more than one credit card can tempt you to use more money, this means more debt. In addition, applying for more than one account can reduce your credit score.
The effect is small and temporary, but it’s better to avoid it. Finally, if you continue to apply for more than one credit card, you may be able to have a rejection due to too many requests.
When is the Best Time to Apply?
Reward credit cards offer benefits to get valuable points, miles, and cashback, which are based on your purchase pattern. However, not infrequently the credit card reward feature offered is only to attract customers to want to open an account.
Because bonuses from registration can vary throughout the year, highly-efficient credit card reward users must wait until competitive offers are available. At the same time, credit card reward users should avoid applying for new credit cards before applying for large loans such as mortgages. If you apply for a credit card this can increase the interests of the lender, and applying for credit can cause a decrease in credit score.