Asking yourself whether you should get a loyalty credit card is a little bit like trying to decide whether to pick up a $100 bill fluttering down the sidewalk — credit card points are free money.
And with credit card companies piling on the perks in recent years, you’ll find cards to fit any preference: free flights, hotel and restaurant discounts, cash-back bonuses for signing up — so the sky’s not even the limit, according to a recent Washington Post article.
The Post’s advice?
“Let credit card companies reward you. Choose a rewards card that complements your lifestyle. Maximize your benefits by researching initial bonuses and long-term benefits.”
It really is as simple as that.
Quoting several credit card experts, the Post article offers advice on how to decide which card is right for you, how to make the most of your benefits and other considerations for card shoppers.
The experts agree that as long as you pay off your balance each month, you can revel in rewards that might sound too good to be true.
That, of course, is the caveat: paying off that balance. Failure to do so subjects you to interest rates that are generally much higher than other credit cards.
“If you carry a balance, you’re going to pay more in interest than you’re getting in rewards,” cautions Odysseas Papadimitriou, chief executive of CardHub.com.
The bottom line: Keep your credit rating clean, read the fine print and be realistic when you think about how you’d use your points.
And contact us — we can help you maximize those benefits.
Hey, is that a C-note there by your foot?