When it comes to credit cards, getting a "reward" can actually be a setback if you don't get the right benefits or use them wisely. Over at the Dumb Little Man blog, J.W. Corbett from card comparison website Creditor Web offers some great advice on how to actually benefit from rewards-based cards. He kicks off his eight-point list with a doozie:
About 95% of all rewards cards offer the exact same reward; 1% cash back. They each package it differently such as airline miles, points, cash, hotel discounts, etc., but the truth is a "point" or "mile" is generally worth 1 cent. In the end all the rewards still end up being the equivalent of about 1% cash.
Corbett's other tips include reminders to pay off the card's balance every month and plan how to use the rewards money. How did you choose your rewards card? Leave your own suggestions in the comments.