Reward Money

2008-12-01 15:15:44

( Financial )



If you've ever used a credit card in your life, you are probably aware that credit cards often use points whenever you use them. The most common rewards program is the miles program wherein you can earn airline miles whenever you use your credit card. Some credit cards even use reward money as an incentive for using the credit card for spending.

Cash rewards are now the hottest marketing tools of credit card companies. This is similar to the cash back rewards program wherein you get back a certain percentage of the amount of your total spending. The good news is you can have this free reward money if you pay your credit card bill on time.

The thing about credit cards is that they can be useful tools or they can be money traps. If you don't know how to manage your personal finances in the first place, it is not advisable for you to use one. Some people spend what they haven't earned yet because of credit cards. Instant access to credit can indeed be very tempting.

Credit cards are not for everyone. Before even planning to get a credit card, you have to assess yourself first if you have the self-discipline necessary to manage your spending. This can save you the trouble of what could be a financial disaster.

On the other side, if you can control your spending and use your credit card wisely, you can take advantage of the reward money that credit cards offer. This is like free money that you can take just for spending. We all know that smart spenders choose carefully what they spend their money on so promotions like reward money have little or no effect to their spending. The added reward money is just a bonus for them. They have access to free credit and they are being rewarded for it and they just pay a small annual fee.


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