(WTNH) — We all know credit cards are an important part of daily life, and they can be particularly tempting when it comes to rewards and perks offered, from travel miles to points for shopping and cashback.
With so many options out there, we are stretching your dollar with what to consider when choosing the best one for you.
Chartered Financial Consultant John Caserta said, “When you’re looking at these options, you really need to look at which one would be the most appropriate for you.”
Caserta said you don’t want to get a rewards credit card just for the perks. He says they’re nice to have, but don’t start spending out of control just to get them. And, before you sign up, be sure you understand the terms.
“Really look at where you’re going to spend this card the most, and then take a look at the fine print,” Caserta said. “You want to make sure these points are as flexible as you think they are, you can use them when you want, they don’t expire.”
When choosing a card, you may also consider it’s easier to combine rewards when they come from the same issuer. You may be able to see them all with a single login.
Also, Caserta says some “rewards” may be taxable.
“I had a friend who got a 1099 because he signed up for a credit card and he received an iPod…But the point of the story is he didn’t have to do anything to get it, and then he got a 1099 where it is taxable.”
And of course the annual fee – find out what it is and whether it’s worth paying when you see what you’re getting.
He offered three free resources to help you compare options:
Just remember some free resources may have advertising agreements with some cards. But it’s at least an opportunity to compare features on these sites.