Are Reward Credit Cards Worth It?
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A rewards credit card is exactly what it sounds like: a credit card that rewards you for your purchases. Used responsibly, a rewards credit card can help you save money on everything from travel bookings to Amazon purchases.
Every reward credit card is intended for a particular type of purchase. When determining which card is ideal for them, users must take their spending habits, the bank's rewards programme, and the card's overall appearance into account.
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Following are the pros and cons of reward credit card:
Pros
- Earn money, miles, or points for each transaction.
- Redeem points for things like airline reservations, statement credits, and credits for online shopping to save money.
- Many credit cards with incentives don't have annual fees.
Cons
- You could be tempted to overspend in order to use up all of your incentives or sign-up bonuses.
- To save money, you must redeem your rewards, however certain redemption alternatives result in a lower value for your awards.
- Having strong or exceptional credit is a requirement for the top rewards cards, which may levy an annual fee.
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