accumulated a preset number of points.
More commonly, however, you must take
action to redeem points and generally have
to earn a minimum amount before you can
use them.
Expiration and Forfeiture
All rewards not redeemed are poten-
tially subject to expiration and forfeiture.
Some cards have policies where if your
card is inactive for a long period of time,
your rewards may expire. You may also
forfeit your rewards if they are not used by
a specific deadline. Though these two terms
are distinct, expiration and forfeiture both
result in the same outcome: your inability
to use the rewards if you don’t follow the
conditions provided by the issuer. If you’re
having trouble finding your card rewards
expiration and forfeiture rules, contact the
card issuer directly to ask.
FINDING THE BEST REWARDS CARD
FOR YOU
While the specific rewards offered and
the rules for earning and using them are an
important part of deciding which rewards
card to apply for, you should also consider
the following to find the best card for you:
Annual Percentage Rate (APR)
The APR is the amount of interest you
will pay annually for borrowing money
using your credit card. Of course, you’ll
want to find a card with a low APR, and
you’ll find many cards advertising low
introductory APRs, which will eventually
40 HimPower May/June 2019
increase. You won’t know the rate you’ll
get until after you’re approved, but before
committing to a card, make sure you’re
comfortable that the APR charged is worth
the rewards offered. For instance, you may
find a card that offers 2% cash back on
purchases, but if you do not pay your card
balance in full each month and end up
paying 15% on the balance that is carried
over to the next month, you’ll be paying
more in interest than what you are earning
in rewards.
APR for Balance Transfers
Most cards have a different APR for
balance transfers. Often, cards offer a low
introductory rate for balance transfers
that will increase at some point. If you’re
thinking about transferring a balance from
one card to a new rewards card, compare
the interest rate you are paying now with the
rate you’ll pay with the new card (not just
the introductory rate).
Fees
Compare the fees listed on each card
you are considering. Common fees include
an annual fee, cash advance fee, and
late-payment fee. If you’ll be transferring a
balance, take a close look at balance-transfer
fees too. You will want to think about
whether the amount you will pay in fees is
worth the amount of rewards you will earn.
There are lots of details to consider, so
before you sign up for a rewards program,
make sure it is the right choice for you to get
the most from your spending.