It seems like every credit card commercial you see on TV or in an Internet advertisement has some kind of too-hard-to-pass-up benefit to offer. They all sound pretty enticing, don’t they? Free travel, cash back, low interest rates – how could you go wrong with any of those? Unfortunately, there isn’t one credit card out there that offers you all of those benefits. So then how do you know which benefit is the best for you and trumps all the others? We’re discussing the pros and cons of credit card benefits so keep reading!
Are you the adventurous type that’s always on the go? Or the avid business traveler commuting via plane instead of car? Then a travel rewards card might be the best type of benefit for you and your lifestyle. Travel rewards cards have benefits that range from airline miles to free hotel rooms and rental cars. Some airlines offer their own credit cards with sign-up rewards. Each card and company’s benefit will differ, so be sure to read the fine print!
If you’re all about saving some extra cash, this benefit might be of use to you! A cash-back credit card gives you just that – cash back on your qualifying purchases. Usually, the cash-back amount is small (around 1-2%), but that adds up if you use your credit cards for all of your everyday spending.
Some credit cards out there simply offer you points for every dollar (or specified amount) that you spend. In turn, you can use those points to go “shopping” in their marketplace for gift cards, spa services, travel, etc. If you like a variety of what you can do with your benefits, this route might be best.
No annual fee or low interest rates:
These benefits are for the straight shooter and offer no frills rewards to their customers. With this type of credit card, you skip the annual fee (each card has a different fee they charge each year and could range from $30 to even $400) or a low interest rate of your carried balance. If you’re a consumer that prefers not to pay off your credit card balance each month, a low interest rate would be beneficial.
Sometimes, you can find a card that combines some of these benefits like low interest AND travel rewards. Other times, you’ll have to choose what is most important to you and conducive to your lifestyle. Be sure to do your research and read all of the fine print before committing to a credit card!