| If you're planning on applying for a reward | | | | certain percentage is given back to your |
| credit card, knowing its pros and cons will | | | | account. Just like cash back points, rebates |
| surely help you come up with a better | | | | can be used to make new purchases or pay off |
| decision. Consider the following points about | | | | your credit card balances. |
| the advantages and disadvantages of reward | | | | |
| credit cards: | | | | Travel for Free. Travel reward credit cards |
| | | | work much like a cash back credit card where |
| Advantages of Reward Credit Cards | | | | the card holders collect as many points as he |
| | | | can from his purchases. However, instead of |
| Earn from Your Purchases. One of the most | | | | cash, the points are equivalent to mileage. |
| ideal features of a reward credit card is | | | | When you've collected the minimum number of |
| that it lets you earn from your purchases. | | | | mileage points needed, you get an instant |
| This is especially true from cash back credit | | | | free travel ticket from the credit card |
| cards because with each dollar you spend on | | | | issuer's sponsor airline. |
| your card, you get a corresponding point. | | | | |
| When you've collected these points, you can | | | | Get Additional Privileges. Aside from cash |
| either exchange it from a credit card's | | | | and rewards, card members are given exclusive |
| redemption store or use those points as cash | | | | privileges that non-reward credit card |
| to buy products and gadgets. | | | | members do not enjoy. For instance, the |
| | | | reward package includes travel accident |
| Get Discounted Rates. Reward credit cards | | | | insurance, car rental insurance, card and |
| often give rebates with each purchase you | | | | cash emergency replacement, no liability on |
| make. This means each time you buy an item, a | | | | unauthorized charges and others. |