Should consumers use multiple cash back and rewards cards or just one

While many credit card companies offer a plethora of rewards in order to lure people in, what many potential consumers do not realize is these rewards, in many cases, come with a higher interest rate.

Consumers debating on whether to have one or more cash back and/or rewards cards need to carefully consider whether these cards will realistically benefit them based on their financial objectives and personal spending habits. Consumers struggling with massive credit card debt, for example, should shy away from having too many rewards cards tempting them to spend even more. If you are someone who tends to carry a balance, savings from a lower interest rate card may exceed the value of any cash back or rewards connected with having too many cards

Those rewards cards with lower annual percentage rates (APRs) offer the rate based on an individual’s creditworthiness. However, many rewards cards have high penalty APRs that kick in after just one late or missed payment, with a good deal increasing by up to 10 percent or more. In fact, such penalty APR rates can range from 16 percent up to 30 percent and can even remain indefinitely.

The ideal holder of multiple rewards cards are those who can afford to pay their balance in full each month while utilizing such rewards to their fullest. For example, if you are someone who pays their balance in full each billing cycle and travels extensively, a card with rewards miles could put money in your pocket. If you drive a great deal, cards offering gas rewards could be very advantageous. Perhaps you do both, then it might behove you to carry multiple cards, all with the caveat, you do not carry a balance over each month.

Before applying for multiple rewards cards, consumers should inquire with the card issuer about how to earn and redeem the rewards, including what is considered an eligible purchase, whether rewards are available monthly or annually, and in the case of cash back, whether rewards go into a bank account or are put toward the next bill, and lastly if there are any limits on rewards. Cash back cards could be beneficial to those who shop frequently but could be extremely dangerous if not used correctly, especially if you have more than one. Consumers should take the time to read all terms and conditions to see if the card will actually benefit them. In most cases, multiple or even one cash back rewards card can encourage spending. It takes tremendous financial disciple to make multiple rewards cards worth their while.

Getting the Most from Your Travel Rewards Card for European Vacation

Having an airline rewards mileage card can make a huge difference in cost when it comes to booking your European trip. Here are some tips and tricks to ensure that you get the most value out of airlines rewards card.

Depending on the type of card you have and the amount of points you have, you can redeem those points for international destinations in Europe. That way you don’t have to worry about paying cash for flights but using your accumulated rewards points to fund the vacation of your dreams.

The best way to make sure you get the most from your airline rewards card is to see what kind of deals they offer for air miles before you even sign up for one. It’s a good idea to evaluate your spending habits and see which card offers you the most rewards. Do you spend a lot of gas? Do you spend a lot on groceries? Does the card offer to double or triple your rewards? All these questions are good things to think about before you commit to a card. Many people find it a good idea to charge all their routine monthly expenses on the credit card and then pay the balance off at the end of the month. This allows you to get the greatest bang for your buck as you are getting rewards for items you would have purchased anyway.

Once you determine your spending habits, sign up for a card that will allow you to maximize your travel times. Keep an eye out for airline alerts and special deals so when you do schedule your flight, your airline miles will be maximized.

Another important way to maximize the use of your airline miles rewards card is to always remain with one airline. Rewards are predicated on loyalty, airlines want to keep you coming back for more trips. The longer you stay with one airline, the more rewards you will receive. Airlines also make it easier to redeem your miles if you have been with the airline for a long time. They basically look out for you if you look out for them. For European vacations, it’s a good idea to remain loyal to one airline.

Another good way to get the most of your card for European travel is to use a travel rewards card that allows you to turn in points for a hotel room. Planning ahead and saving your miles can provide you with a great vacation at a low cost and who doesn’t want that?