New Reward Cards are Attractive for Many Cardholders
Rising interest rates and increasing credit card fees are creating concern for consumers, but there is good news for many who use credit cards. As competition increases so do rebates and rewards. Credit card companies are offering creative and useful rewards that will benefit cardholders who pay their card in full each month.
"Consumers who pay off their balance now have good choices in credit cards. This is also a good time to get a reward card because we are entering the Christmas shopping season with frequent credit card usage for many households," says Bill Hardekopf, CEO of Lowcards.com. "Consumers need to shop around to compare cards and decide which benefits they will actually use. If you pay off your card each month, the interest rate doesn't matter, so it doesn't hurt to get a little extra for the amount you charge each month."
Reward cards will provide some relief for consumers who feel helpless about rising gas prices Many cards now offer up to a 5% rebate on gas purchases. "For a household that spends $5,000 per year in gas, the rebate can save as much as $250 per year. That helps ease the pain," says Hardekopf.
Consumers can apply rebates toward home principal payments, college tuition and charities such as Make-A-Wish. "Credit card companies are attracting new customers by offering rewards that are actually beneficial, instead of the airline miles that accumulate but are difficult to cash in," says Hardekopf. "Some reward cards now offer unlimited points per year. For example, there is no limit to the amount of your rebate with the Citi Home Rebate Platinum Select Mastercard and it can be used on any mortgage. If you put most of your household spending on that card and carefully pay it off each month, the rebate could be very helpful."
If you are in the market for a car, some cards offer rebates that are good toward any vehicle you purchase or lease. They may be even more attractive since they can be applied toward the service or maintenance of your current car.
The cards with the least attractive offers are the original reward cards- the airline reward cards that still charge annual fees. These pure airline cards are now a poor choice for many users. Consumers should consider one of the more flexible cards available that offers a choice of airline tickets and a variety of other rewards with no annual fee and a lower interest rate.
Despite the tempting offers, rewards cards are not for everyone. "If you carry a balance and have an average to low credit score, pay careful attention to the APR you will likely receive. Most travel reward cards offer a domestic round-trip ticket at 25,000 points. That means charging $25,000 to earn the points. If you carry a balance at 15%, you are paying $3,750 for that ticket," says Hardekopf. "If you carry a balance, your goal should be get the lowest rate possible, not the most rewards."
"Credit card offers have become very competitive with bonus offers and expanded reward choices. It is almost overwhelming to shop around and compare cards. Lowcards ranks the cards based on interest rates, credit card terms and fees. It also brings to light details of the offers that may affect the cardholder such as maximim points earned per year, default rates, and who the card will benefit," says Hardekopf. "Lowcards make it possible to thoughtfully compare the maze of cards and rewards."
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
For more information, contact Bill Hardekopf at 1-800-388-1910 or Billh@LowCards.com
"Consumers who pay off their balance now have good choices in credit cards. This is also a good time to get a reward card because we are entering the Christmas shopping season with frequent credit card usage for many households," says Bill Hardekopf, CEO of Lowcards.com. "Consumers need to shop around to compare cards and decide which benefits they will actually use. If you pay off your card each month, the interest rate doesn't matter, so it doesn't hurt to get a little extra for the amount you charge each month."
Reward cards will provide some relief for consumers who feel helpless about rising gas prices Many cards now offer up to a 5% rebate on gas purchases. "For a household that spends $5,000 per year in gas, the rebate can save as much as $250 per year. That helps ease the pain," says Hardekopf.
Consumers can apply rebates toward home principal payments, college tuition and charities such as Make-A-Wish. "Credit card companies are attracting new customers by offering rewards that are actually beneficial, instead of the airline miles that accumulate but are difficult to cash in," says Hardekopf. "Some reward cards now offer unlimited points per year. For example, there is no limit to the amount of your rebate with the Citi Home Rebate Platinum Select Mastercard and it can be used on any mortgage. If you put most of your household spending on that card and carefully pay it off each month, the rebate could be very helpful."
If you are in the market for a car, some cards offer rebates that are good toward any vehicle you purchase or lease. They may be even more attractive since they can be applied toward the service or maintenance of your current car.
The cards with the least attractive offers are the original reward cards- the airline reward cards that still charge annual fees. These pure airline cards are now a poor choice for many users. Consumers should consider one of the more flexible cards available that offers a choice of airline tickets and a variety of other rewards with no annual fee and a lower interest rate.
Despite the tempting offers, rewards cards are not for everyone. "If you carry a balance and have an average to low credit score, pay careful attention to the APR you will likely receive. Most travel reward cards offer a domestic round-trip ticket at 25,000 points. That means charging $25,000 to earn the points. If you carry a balance at 15%, you are paying $3,750 for that ticket," says Hardekopf. "If you carry a balance, your goal should be get the lowest rate possible, not the most rewards."
"Credit card offers have become very competitive with bonus offers and expanded reward choices. It is almost overwhelming to shop around and compare cards. Lowcards ranks the cards based on interest rates, credit card terms and fees. It also brings to light details of the offers that may affect the cardholder such as maximim points earned per year, default rates, and who the card will benefit," says Hardekopf. "Lowcards make it possible to thoughtfully compare the maze of cards and rewards."
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
For more information, contact Bill Hardekopf at 1-800-388-1910 or Billh@LowCards.com
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