Credit card companies are now offering lots of freebies and treats for their customers. This is to encourage more people to purchase more since shopping season is up coming and people are hurrying to complete their Christmas shopping. Those who have a good credit score will surely benefit from the rewards most credit cards are offering since these companies truly aim to give incentives and cash back to those who are considered as good payers. Rewards may be very attractive to consumers since there are also travel miles that are given for free.
According to Bill Hardekopf of a famous credit card website, credit card companies are now turning to rewards and deals for their customers simply because it is more effective in encouraging their customers to make purchases than encouraging them to use their debit cards. With all the fees that card owners will pay whenever they use their debit cards, it just makes people tired and opts to use their credit cards instead. In October of this year, the agreement of financial reform legislation occurred and that is regarding the charges that debit cards will implement whenever customers are using theirs.
According to a credit card expert, rewards and cash backs are so effective in encouraging people to use their card more when making purchases especially during holidays. The offers for supplementary card applicants and those who will be applying for the first time are also great with more than $200 cash back on their cards. This will surely go a long way especially for new applicants and savvy shoppers. Those with good credit standing will also benefit from this according to an expert because paying bills on time would mean getting rewards for being a good payer as well.
However, according to Hardekopf, if you are currently paying off lots of bills and your salary is not enough to pay for your card balances, you must refrain from using your cards when making purchases or else, you will be a delinquent customer soon. It is not always wise to shop using credit cards because the hole will just go deeper and you’ll never know if you can still get up and move forward after sometime. Cash back and rewards won’t be an ultimate answer and solution to your concerns regarding debts according to Hardekopf. It is still best to manage your spending even if there are lots of encouraging offers around.