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Looking for a credit card rewards program

Updated on November 21, 2012

It's just a matter of time before they get your money

Watch out for credit card reward programs!

I am going to make this pretty short because I am short on time. When trying to review all the credit card companies out there it can get pretty complicated. Every company has their own reward programs to get you to sign up with them. "Watch out" Most of the time there is going to be a catch somewhere in the contract. The contracts are written in ways that can be really hard to understand. what the credit card companies are doing to you. This is why more people are looking into the advantages of using a reputable debt settlement company to negotiate their credit card balance

For example one of the biggest credit card company has a very successful program with an APR. of 4.9% interest for the life of the program. They want you to go through all your other cards and do a balance transfer, this way you will only have to make one payment to them. Why not with a 4.9% interest it would be foolish not to and just think of the money you are going to save. The other cards have 7.99% or even 12% APR that is still a lot of money that can go back in your pockets. Right?

Wrong!!! They use that promotion to get you in that of state of mind. You start thinking about what you can use that extra money you will be saving on. So you jump right on the program and it is great for the first couple of months. It is just an ordinary month, you open up your statement and it hits you right in the face. You went from 4.99% APR to 29.9% APR because your debt to credit ratio is too high or they do not like the weather outside.

I have had a lot of clients that were told by the credit card companies that it is their prerogative to do what they want, when they want.Always read the small print of your contract before signing it. Under the Universal Default Clause the credit card companies can pretty much do what the want, when they want. It would be a good idea to read about Universal Default so you have a better understanding of what you can expect from your credit card company. Make sure you ask a lot of questions before you do anything.

One of the other things that is very misleading is when they say 4.9% or even 7.99% whatever the case may be for the life of the program, watch out. They make it sound as if it is going to stay like that forever as long as you don't mess up on the card. Again not true, when they mean life of the program it only means for as long as they want to offer that promotion on the card. It could be 2 months or 5 months, it will be when they decide they have enough people on the program and as soon as it is time you can bet you will be paying a lot of money in interest.

If this is what has happened to you to by your credit card company and have transferred everything to them and now you are paying double or even triple what you were paying before you did the transfer. If you are tired of the credit card companies raising your interest and want off the credit treadmill, then maybe it's time to start looking at your other options.

If things start to get rough after they raise your interest "stop spending". Don't buy things that you can't afford right now. The more money you put on the card the harder it will be to catch up. If you are at a point and don't think you can catch up, do not wait until it's too late before you do something about it. Check out all your options like debt settlement vs credit counseling. Also talk with several companies so you have an idea on what each company has to offer.

You can go to the website above, the one with the Maxed Out Video for more information. Just like the credit card companies you need to be very careful when looking for any credit card debt negotiations company to help you out. Check out the BBB for background information on the company. If you have any questions or want to speak with me, leave a message and I will respond to you.

Hopefully you never have to deal with a situation where you have to use a company for help but if you do need to start dealing with your debt, I would be glad to answer any questions you have and if I can't help you at least I can point you in the right direction. Thanks and have a good day.


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    • profile image

      nomad79 8 years ago

      great job as always on your hubs. They have a lot of good information for prople to know.

    • Lgali profile image

      Lgali 8 years ago

      good tips

    • profile image

      Jody MD. 8 years ago

      Nce job keep up the good work

    • glassvisage profile image

      glassvisage 9 years ago from Northern California

      Good tips to look out for, especially about the APR. Those are what a lot of people warn against.