By Roseanne Colletti, Reporter
Know this going in: a credit card offering a reward program typically has a higher interest rate than cards not offering rewards.
So, if you carry a monthly balance, you could pay more in interest than you collect in reward points. On the other hand, if you do opt for a rewards program card, read the fine print to see just how expansive it is. It may have a cap on the amount you can collect or the time in which you may use your credits.
There could also be a spending requirement before you start accruing points. Also, watch out for the types of things offered. Sometimes, spending your hard-earned points is actually more expensive than just going out and paying for the items.
As a practical matter, its better to have just one or two cards with a rewards program and then use them for everything, including bill-paying when you can. Your point repository will grow faster and fatter. Don’t forget to tune in to ”Today in New York” on Monday, June 2nd, for my report on cards that give money back for gasoline.
