Rewards Cards Grow In Popularity
There are no hard and fast numbers to measure how much rewards credit cards are being used as compared to other types of credit cards such as business and balance transfer cards, but as many as 70% of all credit card transactions are done using rewards credit cards. That data is supplied courtesy of Brian Riley of TowerGroup, a credit card research firm.
Rewards are indeed an excellent way to get more for your consumer dollars, but only if they are used properly. What I mean by that is rewards cards typically carry a higher annual percentage rate than standard credit cards. Many also charge their cardholders annual fees. These increased rates help the credit card issuers offset the cost of their rewards programs.
One sure way to beat the higher APR of rewards cards is to pay off your balance in full each billing cycle. That way you will not be charged interest at all. Of course, I think it pretty much goes without saying that it is always ideal to pay your statement off every month so you are not subject to interest charges.
As far as annual fees go, shop around for cards that do not have annual fees and if you should already have a card that does charge an annual fee, try to negotiate with the credit card issuer to see if they will waive the fees. While this does not always work, you may just be pleasantly surprised at how receptive they can be.
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