If you’re tempted to sign up for that new rewards card – buyer beware!
Certified financial planner, Karen Malone, says the credit card companies are the ones who end up rewarded. Typically, rewards cards carry higher interest rates, hidden fees, higher late and annual fees and sometimes even shorter billing cycles. You’ll probably have to spend a certain amount before the rewards kick in – and you’re just being encouraged to spend more than you should for a minimal prize.
Credit card companies make a lot more off of your debt than from your purchases, so don’t ever spend more than you can pay in full at the end of the month. Keep in mind that if you have too many cards – you’ll be rewarded with a crummy credit score.
No comments:
Post a Comment
Post your Wisdom