Among all types of credit cards, credit cards offering rewards or bonus points are usually the ones with the highest interest rates. But if youre not cash strapped and youve got a steady (not to mention abundant) source of income then maybe, this type of credit card is the ideal credit card for you.
The way a credit card offering rewards or bonuses works is quite simple. Each time you use your credit card, you are awarded a point. The number of points youre awarded depends on the amount of your purchase. You can maximize the use of your credit card if youre also able to pay off your purchases before it could incur high finance charges. If you dont, then whatever reward or bonus youll be earning later on may just be equal to what youve paid the company for in terms of interest charges.
There are different types of rewards that are offered by credit card companies and it is certainly better that you choose one that would suit you best to make you more motivated when it comes to paying promptly. Some credit cards offer travel benefits as rewards. These benefits include but are not limited to free air travel, free hotel stays and rental cars.
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