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5 Things to Know about Credit Card Rewards Programs

Credit card rewards programs have come a long way. At first, they were reserved for the elite credit cards, which mostly required high priced annual fees to participate. Now, most every credit card has a rewards program, and most every program doesn’t even require an annual fee. That’s the beauty of rewards programs now—they’ve become a major way for credit cards to compete for your business. So you should take advantage of your opportunities and get the best rewards program possible.

1. Experience Rewards

The first thing you should know about credit card rewards programs, though, is that today’s are not your grandmother’s rewards programs. Today, you can basically get anything that you want as a reward. This new system is sometimes called “experience rewards”—by which you can practically name anything as a reward to the credit card concierge, and he or she will tell you then how many rewards points you need.

2. Is it for You?

Of course, you should know whether or not you need such extravagance. If you don’t have the time or the inclination to, say, ask for an experience reward like an African safari, then these fancy cards are not for you. You may be better off looking for cash-back rewards programs, or a smaller scale travel rewards program with no annual fee.

3. Are You a Dedicated Customer to a Particular Brand?

A third aspect of rewards programs to know about are the very specific cards out there from, for example, a specific car maker or a theme park company. Usually, rewards from these programs go to free or discounted items from only that particular company. That makes these cards only worth it for very dedicated customers—someone who only buys GM cars, for instance, or someone who regularly visits Disney parks or stores.

4. Shop Around for the Best Deals

Whatever type of rewards program you pick, you should be sure you’re getting the best bang for your spent dollars. Many average programs offer 1 reward point for every dollar spent, or 1 percent or less cash back for every dollar spent. If you shop around for specials, however, you may be able to find even better deals in rewards programs.

5. Know the Ins and Outs of Your Deal

Lastly, never pass up the chance to beef up on your rewards points. Most cards offer chances to load up on points through special promotions. They may, say, offer triple rewards points during the first six months you have the card, or offer more cash back if you shop at specific stores or eat out at restaurants. Know these deals. Take advantage of them!

Getting A Loan With A Bad Credit Rating

The good news for consumers with bad credit is that in today’s marketplace, there are more options for obtaining credit. While borrowers with excellent credit certainly have greater opportunity and access to higher loan amounts, favorable terms, and better rates for loans, borrowers with bad credit now have some hope to borrow money for specific needs.

Many lenders are putting together unique and specific loan products tailored to borrowers with bad credit. Typically, to get the best loan amount, terms and rates available, borrowers that have a bad credit history must secure loans. This means that they must put up their home, auto, or other valuable asset as collateral to reduce the risk to the lender of funding the loan. Homeowner loans are usually the most beneficial to bad credit borrowers if they have some equity in their homes and a valued property.

Obviously, it is much better to maintain good credit, but for many borrowers it is too late. Some lenders offer certain programs that are put together to give borrowers a chance to rebuild their credit while at the same time, gaining access to modest loan amounts. This helps the consumer borrow for specific needs and rebuild their credit for larger or more pressing future financing requirements.

With revolving debt and credit card balances on the rise, more and more consumers are finding themselves in situations with overwhelming and unmanageable debt. Some lenders also offer certain types of debt consolidation loans that allow borrowers to move balances from higher rate loans and cards to lower interest rate products. This is where second charges or homeowner secured loans are often used by borrowers with bad credit to obtain better rates than are available to them through unsecured loans.

The key for lenders is to effectively balance the risk to reward ratio of lending money. Lenders are obviously in the business of lending money so that is what they ultimately would like to do with any borrower. The borrower needs to offer support to their ability to repay debt or security to help offset the risk the lender perceives from the bad credit rating of the borrower. Consumers do need to be careful about overly aggressive creditors who seek to prey on desperate borrowers. Companies that approach consumers with offers that sound ‘too good to be true’, include up front fees, or hide unfavorable terms in fine print should be cautiously evaluated.