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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.
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