When you apply for either a rewards based credit card or simply a cash back credit card, I’m assuming you’re getting the card so that you can actually take advantage of the rewards.  Well, some people think they are getting the rewards but they really aren’t.  I’m going to show you some ways on how people use their credit cards the wrong way and simply don’t benefit.

Getting a card that focuses on what you don’t spend

Let’s say you do a lot of travelling via the air but instead, when you were looking at the reward based credit cards, you signed up for gas credit card instead.  Now, every time you fly, you’re not going to get rewarded but instead, you’re only going to get rewarded every time you fill up your gas tank.

Getting a card with an annual fee

A good cash back card won’t have an annual fee.  In fact, most of them don’t.  If you do make the mistake of getting one with a fee, you’ll soon find out that the annual fee will probably be more than the rewards you earn throughout the whole year.  You have to be careful with the annual fee when you’re looking to get rewards.

The points simply expire

Most credit cards on the market have points that don’t expire but this is another thing that you need to be careful about.  When you build up your points, you may find yourself saving for that certain item but you come to find out that one night your point simply disappear.  Why?  Your points can expire and if you get a card that doesn’t allow the points to expire, you won’t have anything to worry about.

The rewards program just plain out stinks

Most reward programs work in two different kinds of ways.  You can either get a statement balance or you build up points.  In exchange of the points, you’ll be able to trade them in for gift cards, electronics, etc.  Make sure that you always do research on the rewards program before you sign up for a card.  You may soon find out that the rewards you’re going to get are going to be complete crap.  Instead, find a company that treats you like gold and gives you the rewards you deserve.

In the long run, my word of advice to you is to make sure you do your research.  Most of the major credit card companies out there do have great reward programs.  Find one you like, use it right and remember, always pay your bill off in full on time.

Related posts:

1. Credit Card Reward Programs
2. When Rewards Cards Aren’t Rewarding
3. Ways to Snag A Great Credit Card
4. Credit Cards Offering Cash Back
5. Making A Profit with a Credit Card