The way to help build a bright future is to extend your education into a higher learning facility. A 2004 study by the U.S. Department of Commerce found that a high school graduate earns an average of $36,000 per year, while a person with a Bachelor of Arts Degree averages $65,442. These startling figures alone should encourage most students to continue their education after high school graduation.
As parents, we see that our children attend school to get their book smarts and urge them to further their schooling. But quite often we neglect teaching them one of life's more important lessons, money management. This can be one of life's tougher lessons and not so easily learned. That's where the student credit cards can come in. The lower limits set on the student credit cards can keep the lid on expenditures, while at the same time showing the student exactly where their money is going. The discipline of meeting that monthly payment each month is part of their higher education while at the same time helping to build a future. It’s another form of education, but in real life.
As the college degree brings a much higher earning potential, no matter what your income level is, a good and solid credit rating is a must for every person. Whether it’s a home loan or a car loan or a department store credit card, a good credit rating is a necessity of life. There's no easier way to begin building that credit history than to take advantage of one of the hundreds of student credit card offers being made today. Whether it be an online credit card offer or one received in the mail, students should seriously consider obtaining a student credit card.
The student credit card offers vary. From 0 introductory APR to cash back programs, there's an offer to fit everyone's needs. Some credit card companies offer rewards to students for keeping their grades up and paying their bills on time. You just may be able to afford that graduation trip through one of the rewards programs being offered. This is the perfect way to learn Finance 101, the discipline of money management, build a good credit history, and be rewarded at the same time. Obtaining a student credit card makes perfect money cent$.
If you haven't been credit card shopping recently, you'd be amazed at the variety offered today. In addition to the different interest rates, the extent of rewards or perks offered is vast. There are cards offered to fit everyone's needs. Good credit, bad credit, in between, 0% APR introductory offers, sky miles, cash back,... just to name a few.
Of course the financial experts would tell you to watch that credit card debt, pay off the balance every month so you don't have to pay interest. If you do have high balances the experts would also tell you to take out a loan on your home so you could get a lower interest rate and tax advantage too. But that's not always realistic or possible for some. Perhaps they just bought their first home and the equity is limited. There could be a number of reasons why the professional financial advice just won't work. So what to do?
What if you just purchased your first home and your credit cards had balances with interest being accrued each month? Then say you like to travel, but you have these bills. Could you plan a trip in the not too distant future? I believe you could.
Most of the credit card companies today have 0% APR introductory offers. This rate is good for six to twelve months and many times is valid for balance transfers and purchases. In addition, many offer rewards such as air miles.
First figure out the most you could pay each month on these accounts combined. Apply for a card that offers 0% APR for twelve months and transfer the balances that are accruing interest to this new account. Now remember, you're saving interest each month. Then you could use the credit card as much as possible for daily expenses, keeping track of and setting that amount aside each day. At the end of the month, you should pay the amount determined which you could afford on the balance transferred and then pay the entire amount charged for the monthly expenses.
By doing this, you would be paying off the older balance with a 0% interest rate and earning rewards at the same time. At the end of the twelve months you may very well have enough points to take that planned trip. Your credit card balance should be paid off almost completely.
When things seem out of reach, you can achieve them, as long as you have a plan.
Credit card rewards programs have come a long way. At first, they were reserved for the elite credit cards, which mostly required high priced annual fees to participate. Now, most every credit card has a rewards program, and most every program doesn’t even require an annual fee. That’s the beauty of rewards programs now—they’ve become a major way for credit cards to compete for your business. So you should take advantage of your opportunities and get the best rewards program possible.
1. Experience Rewards
The first thing you should know about credit card rewards programs, though, is that today’s are not your grandmother’s rewards programs. Today, you can basically get anything that you want as a reward. This new system is sometimes called "experience rewards"—by which you can practically name anything as a reward to the credit card concierge, and he or she will tell you then how many rewards points you need.
2. Is it for You?
Of course, you should know whether or not you need such extravagance. If you don’t have the time or the inclination to, say, ask for an experience reward like an African safari, then these fancy cards are not for you. You may be better off looking for cash-back rewards programs, or a smaller scale travel rewards program with no annual fee.
3. Are You a Dedicated Customer to a Particular Brand?
A third aspect of rewards programs to know about are the very specific cards out there from, for example, a specific car maker or a theme park company. Usually, rewards from these programs go to free or discounted items from only that particular company. That makes these cards only worth it for very dedicated customers—someone who only buys GM cars, for instance, or someone who regularly visits Disney parks or stores.
4. Shop Around for the Best Deals
Whatever type of rewards program you pick, you should be sure you’re getting the best bang for your spent dollars. Many average programs offer 1 reward point for every dollar spent, or 1 percent or less cash back for every dollar spent. If you shop around for specials, however, you may be able to find even better deals in rewards programs.
5. Know the Ins and Outs of Your Deal
Lastly, never pass up the chance to beef up on your rewards points. Most cards offer chances to load up on points through special promotions. They may, say, offer triple rewards points during the first six months you have the card, or offer more cash back if you shop at specific stores or eat out at restaurants. Know these deals. Take advantage of them!
It has always been practical for people never to bring a huge amount of cash with them when they’re going out and they’re not completely sure that it will be a safe journey all the way. And that’s why such items as checks, ATM cards and of course, credit cards, were created. If and when you have the misfortune to lose any of them, all you have to do is call your bank, inform them of what happened and that’s it! Your money is still safe and sound.
Also, because there are just so many wonderful things that one can buy in the most unexpected places and it would be nice to feel that wherever you go, you’ve got the full value of your bank balance with you. If it’s in cash, that would be terribly impractical. But if it comes in the form of a credit card, well, then, now you’re talking!
There are a lot of advantages one can experience when having a credit card of your own but this time, we’ll only concentrate on one particular kind of credit card: the reward type. What are the great things that one can experience with a reward credit card? Is there a bad side to owning a reward credit card? These questions shall be hopefully answered successfully in the succeeding paragraphs.
The Great Things about Reward Credit Cards:
How the reward system works is quite simple. Each time you use your credit card, you earn a reward or bonus point. The higher the purchase value of the item you bought using your credit card, the more reward or bonus points you receive. Simple, isn’t it?
Now, these reward or bonus points – the term used for this depends on your credit card company but its meaning is basically the same – may have an equivalent value in cash or, when accumulated, can be used to win free stuff for you.
For example, a free Gucci bag, according to the rules of the reward system of your credit card, is equivalent to one thousand bonus points. Each reward point, on the other hand, has an equivalent value of $10. That means, for every $10 you consume in your credit card spending limit, you earn one bonus point.
There’s more. Because credit card companies profit from your credit card usage, you’ll notice that each year, the list of items available in exchange of reward points is getting longer, better and more varied. In fact, the sky’s the limit to what you can gain for free just by using your reward credit card!
So what are you waiting for? Grab an application form and you just might be in time for the spring sale!
It is not everyday that people get something for free. That is why whenever there are some freebies or rewards, the common tendency is to grab the opportunity.
This is particularly regular in the credit card industry. In fact, it is for this reason why most credit card companies offer different credit card rewards. They know that people will be enticed to sign up for a credit card not just because they need it but also because they want the rewards.
Credit card rewards are already accepted by the public as part of the credit cards. It is, basically, the greatest marketing tool of every credit card company in order to entice people to sign up.
With a growing fierce competition among the card businesses, offering some rewards is the only way to persuade a consumer to use a particular credit card instead of the other one.
In turn, there are many rewards as there are many credit cards in the market today that people do not even realize that many of them are not actually necessary.
Hence, it is important to analyze first the rewards being offered by the card company before signing up. The problem with most people is that just because a particular credit card offers many rewards they tend to get one even if they had enough.
No wonder why the average American household had been reported to have 7 to 10 credit cards in a 2002 survey.
Indeed, nobody can ever question the proliferation of rewards in the credit card industry. It is the credit card company’s way of getting a sale, so it should be left that way.
What should be done is for the consumers to know and analyze the kind of rewards they really need. Here is a list of some rewards that people should learn to evaluate if they really need them on their credit cards.
1. Cash back rewards
Many credit card companies offer cash back rewards. These companies insist that they can give their costumers free cash just by using their credit cards every time the customers purchase something.
It sounds like a good idea, but one should bear in mind that most credit card companies could only give “1% cash back.”
In addition, not all purchases have cash backs. In reality, the company will only give cash back to some particular transactions, not all.
What is even worse, some companies give the rewards annually, usually within the date the card has been activated. That would mean a long time to wait for incentives.
2. Freebies
Most credit card companies will offer freebies to their customers. These freebies are usually redeemed once the user was able to accumulate the necessary points. These points are accrued every time the consumers use their credit card for purchases.
After building up some points, the consumers can exchange these for some free items. These things can be pretty useful especially if a person has some need for the item he or she had received.
However, people should keep in mind that freebies and reward points may vary from company to the other. Hence, it is important to evaluate this kind of reward as well.
3. Airline Miles
Some credit card companies offer “airline miles” every time the credit card holder makes a purchase. Accumulated airline miles can be exchanged for some airline tickets.
This kind of reward can be very useful especially if the credit card holder travels a lot. Otherwise, it would not do anything much as a reward.
These are just a few of the many rewards that credit cards offer. All of them can be very beneficial; there is no doubt about it. The only drawback is when the customer has no use for it.
Therefore, it can be concluded that credit card rewards are only true to those who can benefit from it. Otherwise, rewards are not rewards but plain marketing strategy on the run.
Whatever type of credit card you're shopping for, student credit card, business card, airline card, most all have a credit card reward program. To attract your credit card dollar the financial institutions spend millions of dollars advertising these incentives with direct mailings and media advertising. It doesn't matter what your lifestyle, there's a credit card that has a reward program that fits your needs.
One thing that lures many people into applying for a card are the bonus points offered that are activated when you use the card the first time. They then put the card away and never use it again. This can be a good strategy if you have a high credit score. Please be aware, that if you follow this type of plan, applying for a number of credit cards at once, can have an adverse effect on your credit history. The credit limits allowed by each credit card account you have open also effects your credit score.
So if you're in the market for a new credit card, it's best that you pick one card that would be the most benefit to your needs. Don't fall into the trap of having five to eight credit card accounts opened all at once. Besides having these inquiries effect your credit score, you just may be tempted to use each or all of these cards at the same time, which can lead to financial disaster.
Not all credit card reward programs that suit your needs would be found under the credit card category of rewards. It depends on the type of benefit you want from your card. Look into the category of card you're looking for, then review and compare the rewards offered by each issue.
Airline cards offer an accumulation of frequent flyer miles, car rental discounts, hotel discounts, and rewards points for using your card at specific restaurants. Business cards offer a variety of incentives from cash back, gift cards, savings on certain phone carriers, discounts on business purchases at partner retail outlets, airline miles and car rentals.
The cash rebate card offers cash back when your card is used at specific retail outlets and a lessor cash accumulation for purchases made at other retailers. Even the category of Low Interest credit cards offer a number of rewards from 1% for regular purchases to 5% at specific partner outlets. They even offer a way to double your redemption points when used as gift cards at specific retailers.
If it's savings on gasoline you're looking for, there are a number of gas cards that offer discounts at the pump for using their card. These offers are for specific brands of gas. But if these brands are not offered or convenient in your area, there are additional credit card reward programs that offer gasoline purchases in their eligible cash back program.
What it comes down to is, pick the category of card you're looking for, then take into consideration the credit card reward program offered. Only apply for one card at a time. But be forewarned, that should you not meet the terms and conditions of the credit card offer (also known as the fine print) and fall behind in your payment, your reward points will be withdrawn.
A lot of credit card companies offer incentives to people with large debts. These include 0% balance transfers, 0% purchase rates and long term low interest rates on balance transfers. But people who clear their balances regularly do not benefit from these rewards. After all, if they pay off their balances each month, they are not paying interest anyway. So how can these people gain something from using their credit cards? The answer lies in credit card reward schemes. What Are Credit Card Reward Schemes? Credit card reward schemes are schemes that offer bonuses or incentives to people when they spend on their credit card. These schemes are usually linked to the amount spent, so this is a good option for people who put their monthly spending on their credit cards. There are a number of credit card reward schemes to choose from. Earning Nectar Points With Your Credit Card One of the best known reward schemes is the Nectar points scheme. This started as a loyalty card scheme, with Sainsburys, Debenhams and BP as the principal players. There are now a number of retailers who accept and issue Nectar points. There is also a branded Nectar credit card (run by American Express) which allows card holders to earn Nectar points when shopping for a range of goods with the credit card. Card holders who also have a Nectar loyalty card can earn up to 4 points for every pound spent. These points can then be used for shopping, entertainment, travel and more. Other Credit Card Points Schemes Many other credit card companies also offer their own proprietary points schemes. Again, these allow card holders to collect a set number of points for every pound spent. These points can then be used to claim discounts on food, wine and travel; travel insurance; clothing; high street discount vouchers; or exchanged for cash. Many credit card companies also give cash back rewards. These consist of a rebate of a certain percentage of the amount spent on a credit card per month or year. There is usually a cap on the amount of the rebate. Reward Yourself For Travelling Another common points scheme is the air miles scheme. This allows card holders to earn a set number of miles linked to the amount they spend on the credit card. Card holders can have separate air miles accounts or can gain more benefit by applying for one of the many credit cards that offer air miles as their reward. With air miles credit cards, credit card holders can also benefit from balance transfer rates and other incentives. Many air miles credit cards also offer additional discounts or upgrades on travel products. Other Credit Card Reward Schemes In addition to these credit card reward schemes, there are credit cards that offer specific incentives to consumers. These include earning money to help with the purchase of a car. Credit card holders can also consider using their credit cards to give to charity. There are a number of charity credit card schemes backed by major banks.
Been sucked in to the lure of a “rewards” credit card only to get burned in the end by high interest rates and a less than stellar return when it came time to cash in those points? You’re not alone. For credit card companies, acquiring customers is big business, and most cards today offer some kind of incentive for running up the charges on your plastic. If you’re not careful, and use your card at will just to collect a few measly points, you could get stung. But by following a few simple rules, you can turn the tables on the credit cards companies and use that “rewards” card to your advantage. What to choose? Most likely, your mailbox is full of pre-approved offers for new and exciting credit cards. In fact, in 2005 over 6 billion unsolicited credit card applications were mailed. The average person received approximately 72 offers. If you’re in the market for a new card, it’s important to weigh your options carefully. Most credit cards today offer some kind of rewards, but which one is right for you? Take a look at your lifestyle and spending habits. Would you benefit from a points-based rewards card, an air mileage card, or one that offers cash back on purchases? Points-based cards usually give you one point for every dollar charged. When you accumulate enough, the credit card company will usually have a shopping portal set up, where you can redeem your points on a variety of products (e.g., electronics, gas cards, travel, etc.). Problem is, most items in the catalogue are ludicrously overpriced, though it’s better than nothing. Air mileage cards offer great benefits to the frequent flier, but in today’s airline industry, who’s to say how much fees will be raised by the time you’re ready to redeem? With cash back cards, there’s most likely a set amount you’ll need to charge annually before you reap any benefits, so make sure you read the fine print before you sign up. Take Advantage Quite simply, offering incentive-laden cards are a way for credit card companies to get you to sign up. Rarely are the rewards worth the interest rates you’ll pay if you carry a monthly balance. But therein lies the rub—pay off your credit card every month and put those rewards to work. Here’s how: Charge as much as you can on your rewards card. We know, it goes against everything you were ever taught about using a credit card. Let us explain. If your collectors allow it, charge every bill you have to your credit card instead of using a debit card or writing a check. Then, pay that balance off immediately to avoid incurring an interest fee. You’ll collect big rewards points fast, and it’ll be just like paying cash. Be disciplined about it though, even one month of letting those charges sit on your card can be a killer when the fee kicks in. Another idea: instead of having separate credit card accounts for you and your spouse, ask for an increase in your credit limit and a companion card for one account. The more you both swipe the plastic, the quicker you’ll accumulate rewards points. Off the beaten path As rewards cards have become more prevalent, credit card companies have come up with new incentives to make their cards more desirable to consumers. Many cards have a system that provides extra rewards points to customers who shop with certain vendors. Some will even offer coupons where you can save big shopping with certain companies while still earning extra points. It might take a little more effort, but it will certainly rack up the rewards points at a vigorous pace.
Been sucked in to the lure of a “rewards” credit card only to get burned in the end by high interest rates and a less than stellar return when it came time to cash in those points? You’re not alone. For credit card companies, acquiring customers is big business, and most cards today offer some kind of incentive for running up the charges on your plastic. If you’re not careful, and use your card at will just to collect a few measly points, you could get stung. But by following a few simple rules, you can turn the tables on the credit cards companies and use that “rewards” card to your advantage. What to choose? Most likely, your mailbox is full of pre-approved offers for new and exciting credit cards. In fact, in 2005 over 6 billion unsolicited credit card applications were mailed. The average person received approximately 72 offers. If you’re in the market for a new card, it’s important to weigh your options carefully. Most credit cards today offer some kind of rewards, but which one is right for you? Take a look at your lifestyle and spending habits. Would you benefit from a points-based rewards card, an air mileage card, or one that offers cash back on purchases? Points-based cards usually give you one point for every dollar charged. When you accumulate enough, the credit card company will usually have a shopping portal set up, where you can redeem your points on a variety of products (e.g., electronics, gas cards, travel, etc.). Problem is, most items in the catalogue are ludicrously overpriced, though it’s better than nothing. Air mileage cards offer great benefits to the frequent flier, but in today’s airline industry, who’s to say how much fees will be raised by the time you’re ready to redeem? With cash back cards, there’s most likely a set amount you’ll need to charge annually before you reap any benefits, so make sure you read the fine print before you sign up. Take Advantage Quite simply, offering incentive-laden cards are a way for credit card companies to get you to sign up. Rarely are the rewards worth the interest rates you’ll pay if you carry a monthly balance. But therein lies the rub—pay off your credit card every month and put those rewards to work. Here’s how: Charge as much as you can on your rewards card. We know, it goes against everything you were ever taught about using a credit card. Let us explain. If your collectors allow it, charge every bill you have to your credit card instead of using a debit card or writing a check. Then, pay that balance off immediately to avoid incurring an interest fee. You’ll collect big rewards points fast, and it’ll be just like paying cash. Be disciplined about it though, even one month of letting those charges sit on your card can be a killer when the fee kicks in. Another idea: instead of having separate credit card accounts for you and your spouse, ask for an increase in your credit limit and a companion card for one account. The more you both swipe the plastic, the quicker you’ll accumulate rewards points. Off the beaten path As rewards cards have become more prevalent, credit card companies have come up with new incentives to make their cards more desirable to consumers. Many cards have a system that provides extra rewards points to customers who shop with certain vendors. Some will even offer coupons where you can save big shopping with certain companies while still earning extra points. It might take a little more effort, but it will certainly rack up the rewards points at a vigorous pace.
