Just Say No to These Credit Cards

Beware of these rewards programs…

1.  The Visa Upfront Rewards Card - This rewards card uses a bait and switch type tactic to lure you in with a free $800 laptop computer.  The catch is that you have to transfer $5000 to the card and maintain a balance of $3,500 for 18 months.  You end up paying over $500 in interest.  Basically, if you want a laptop this bad then don’t fall into a gimmick like this one.

2.  Advanta Platinum Business Card – They claim to give you 6% back but if you look closely at the terms and conditions it says different.  The 6% back is only on purchases from $40,001 and $50,000.  If you happen to go above the $50,000 in spending for a year which is not hard to do for a business credit card then you only get 0.50%.  The 6% is only paid for the bonus category of gasoline and diesel fuel, computer equipment and office supplies, or utilities and communications. 

3.  Debit Cards – Why take money out of your bank account if you can use a credit card and have around 25-30 days grace period to pay it off.  Debit cards take money out of your banking accounts and you normally do not get rewards for purchases that you do not sign.  The debit cards that do offer rewards mostly pay on the purchases that you sign instead of use a pin.

4. Limits - credit cards that have limits to how many purchases you make per year or month can be a hassle. Check the terms of the rewards program you sign up for and make sure you do not have a set limit if you plan on doing large purchases on this particular card.

5. High Interest - most rewards credit cards have the higher interest compared to their sister cards without any points or miles programs. You must not carry a balance if your intent is to earn freebies or cash or you will suffer with double digit interest.