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Rewards Cards: Finding Your Perfect Match

Miami debt defense attorneys
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Rewards credit cards are all the rage. When used correctly, these cards can be excellent tools for people to purchase what they need with the added incentive of receiving other benefits, apart from building credit. However, with so many options out there — it’s crucial for borrowers to carefully consider which cards best meet their needs before signing up. Here are some important things to take into account.

Which rewards are best?

Just because a card is popular, doesn’t mean it’s the perfect fit for everyone. Every card offers different rewards, and the best fit will depend on each person’s specific priorities or needs. Cash back cards are popular options, but other rewards cards can be just as beneficial depending on one’s situation. If the cardholder travels often, a card that rewards airline miles is an excellent choice. Likewise, someone who is looking to save money while utilizing credit may benefit from a card with gas or grocery store rewards.

Do the benefits outweigh the risks?

With every credit card comes risk, but special attention should be paid to assessing the risks some rewards cards present. For instance, some cards which offer rewards come with hefty annual fees. If the benefits the cardholder will receive outweigh the cost, this isn’t an issue. However, if that’s not a certainty the borrower should probably look for more affordable options, even if the rewards aren’t as attractive.

Additionally, there may be limits to the amount that’s able to be earned for specific categories, such as cash back or points. If the cardholder makes frequent purchases in a category with an earning cap, he may be pretty disgruntled to find that rewards can no longer be received for that product or service. Best practice is to align the rewards program with purchases the individual already makes, and also do some research to ensure that buying behaviors won’t impact the amount of rewards that are able to be earned.

Can spending be kept under control?

Nearly every store has its own rewards card, so it’s easy to be lured in, but these cards can easily encourage overspending. While the potential for overspending is an issue that should be accounted for with any card, it’s even more critical when evaluating rewards cards due to the validation gaining points gives to purchases. If approved for a rewards card, which usually requires an above-average credit score, the cardholder will need to make sure spending is kept under control so that it doesn’t lead to unnecessary debt.

If poor use of rewards cards (or credit in general) has led you into financial turmoil, seeking out the expertise of an attorney is a good first step to turning it all around. The Miami debt defense attorneys at Graham Legal know more than a thing or two about debt relief, and can guide you through financial struggles. Call today to learn more about the options available to you.

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