As I mentioned, the credit card companies offer these deals to tempt you to spend more than you normally would. Controlling your spending is a huge part of taking advantage of the rewards, but also understanding the terms and conditions behind these deals is key.
Every deal offered will come with strings attached, so be sure to do your research before you apply for a new credit card. Some rewards may be capped at a certain limit, so there’s only so much cash-back or points you can receive.
Be wary of annual fees and other fees associated with credit cards, keep an eye out for expiration dates on deals, and look into how you’re allowed to redeem the rewards. Some cashback offers will only allow you to redeem that “cash” as a credit towards your card statement.
Most importantly, don’t get lured in by 0% Intro APR offers. A credit card that doesn’t charge interest for a whole year sounds amazing… but this is a quick way to get you to rack up your balance and get in the habit of not paying it off in full each month.
Once the Intro APR offer expires, typically months after you’ve received the card, the interest rates will spike highly. Credit card interest rates are insanely high and the best way to handle them is to avoid them.
Also keep in mind that even though interest will not be applied to a balance you carry over month to month, you’ll still need to pay the minimum due payment (at least) to avoid late payment fees.
Is it right for you?
This topic focuses on taking advantage of credit card rewards and inform you of the dangers the allure can bring.
If you have good spending habits, pay off your balances in full and on time, and want to rake in some extra cash or free miles, then this may be a good avenue.
BUT, if you struggle with overspending and impulse purchases, then your priorities should be aimed elsewhere. Focus on paying off any debt you may have, building an emergency fund, and sticking to your budget first.
If you’re unsure or have any questions, feel free to shoot us a message at firstname.lastname@example.org