Customer reward-card programs are becoming more of a factor in credit-card choice. While getting something back for your purchases may sound...
NEW YORK — Customer reward-card programs are becoming more of a factor in credit-card choice.
While getting something back for your purchases may sound like a good idea, be sure to do your research before signing up for a card.
Check the APR: Reward cards typically have an APR about 4 percentage points higher than other credit cards — around 14 to 16 percent. With such high interest, a rewards card makes sense if you plan to pay off the balance each month.
Most Read Stories
- Costco is testing a new burger in Seattle, and it might remind you of Shake Shack
- Seattle No. 1 in home-price growth again; starter homes require half of income
- UW study finds Seattle’s minimum wage is costing jobs
- Zillow vs. McMansion Hell: Seattle company not backing off fight with blog despite PR fiasco
- Elizabeth Warren: ‘The next step is single-payer’ health care
Look for good rewards: Choose a program that will give you back something useful. If you spend a lot of time on the road, consider a card that gives free gas or racks up extra points when you fill up your tank. If you just want cold, hard cash, look for a program that will give you the most for the least amount of points.
Keep yourself in check: You can’t combine reward points from different cards, so try to limit yourself to one or two reward-card programs. Using multiple cards prevents you from racking up points toward any one reward.