Evaluate the value of rewards
In general, reward cards have higher APRs, which is why, if you tend to have a balance, you are likely to agree to a card with lower rates and no rewards. But if you pay your balance in full every month and want to get something in return for what you charge to your card, you may want to have a rewards card. Annual fees can reduce its rewards. Some cards allow you to combine the charges and levels of rewards points. For example, Venture Capital One card offers two versions: one with 2 miles per dollar spent and an annual fee of $ 59 (does not apply in the first year) and one with no annual fee and gives 1.25 miles per dollar.
Some cards charge an annual fee only to people with acceptable credit ratings or low. Cards Capital One No Hassle do not charge fees to people with good credit ratings, but they cost $ 39 a year, with a higher APR, for those with regular credit. So once you get approved for a card, read the terms before turning to make sure that you’re getting a version that does not want. The rewards are also becoming more confusing. The Discover Card and Chase offer rewards attractive bonus of 5% but only in product categories that change quarterly, and each quarter you have to choose to choose them. If not, it only reimburses Discover 0.25%, or $ 7.50, for the first $ 3,000 in annual purchases and 1% thereafter.
Also, here is another trap: cash back 5% of Discover is limited to the first $ 300 to $ 800 in quarterly purchases, so you will not accrue many points “bonus.” By contrast, Chase Freedom allows you to earn rewards of up to $ 1.500 in the categories rotary and fixed a 1% rebate on all other purchases. Beware of phrases that promise “to” the amount of reward. Usually, this means that the rewards will be lower if not spend a certain amount per year. For example, American Express Blue Cash pays 5% on purchases of gasoline, groceries and pharmacy purchases and 1.25% in any other purchase, but only after you spend $ 6,500 in one year. Until then, you will earn 1% and 0.5% respectively. This card is a good option for those who spend a lot of money.