There are a lot of people out there that don’t believe in using credit because they’ve found themselves in a bad situation by misuing credit. They don’t think rewards credit cards are worth it because they have never realized the benefit of using one. We’re here to set the record straight and prove that reward credit cards are valuable, easy-to-use, and most important, rewarding. Read on to learn about five reward credit card myths and why they are false.
1. Reward credit cards always come with fees
There are many great reward credit cards that come with no annual fee. Take for example the BankAmericard Cash Rewards™ Credit Card, which is a widely popular reward credit card with lots of perks and no annual fee. Other popular no fee cards include the American Express Blue Cash Everyday card, and the Discover IT card.
3. Rewards earned aren’t very valuable
Whether it’s a virtually free trip to London or free holiday gifts for friends and family, people who use reward credit cards wisely and consistently find a lot of value in the rewards they earn. Reward credit cards literally have something for everyone. If the merchandise offered isn’t your thing, who doesn’t like cash back or a credit toward your bill? Of course, the more valuable a reward, the more points it requires, which is why we recommend using your reward credit cards as much as possible and paying your bill in full each month.
5. Carrying a balance won’t hurt my rewards
Carrying a balance means that you’re paying interest and accumulating more interest charges each and every month your bill isn’t paid in full. This means that the value of any reward points you do have are negated by the loss of money from owed interest. In other words, if you earn enough reward points to get $20 cash back one month, but have racked up $30 in interest charges, you’re at a loss. Your reward points are still in tact, but you have nothing to show for them.
4. Benefitting from reward cards take a lot of time and energy
This was true a few years ago, but since then Reward Summit was created to maximize your reward points every time you make a purchase with your reward credit card. Using Reward Summit is easy, takes very little time, and tells you which credit card in your wallet will get you the most rewards. Over time, Reward Summit can even recommend a credit card that you don’t have to get even more reward points. With the click of a few buttons, getting the most from your reward credit cards is simple and easy.
5. Reward credit cards aren’t worth it
If you set a budget for yourself and live within this budget, putting most or all of your purchases on your rewards credit card, you’re basically getting something for nothing. If you had paid for the exact same things with cash or a debit card, you would be out the exact same amount of money, but you would have nothing to show for it. Over time, reward credit cards compensate you just for using their card. For us and we think for you too, that’s very worth it.