Let your credit card reward you
News from Washington Post:
For the conscientious consumer, credit card rewards programs are equivalent to free money. Sometimes, the perks sound too good to be true, and that’s because for many people, they are. Rewards cards only benefit you if you pay off your credit card balance monthly. “The interest rates are very high on rewards cards,” says Odysseas Papadimitriou, chief executive of credit card comparison Web site CardHub.com. “If you carry a balance, you’re going to pay more in interest than you’re getting in rewards.”
In recent years, credit card companies have upped the stakes, offering free flights or cash back bonuses for signing up. It takes time to find the card that’s best for your tastes. Do you travel often? Do you have a favorite hotel chain or store? Perhaps you prefer the flexibility of a cash-back program. There are cards for every preference, and the experts help us navigate the choices.
Before you apply
Know your score: The FICO score is the credit score most credit card issuers use when determining whether you qualify. You “don’t want to waste time applying for cards you can’t qualify for,” says Beverly Harzog, a credit card expert for