7 things worth knowing about reward credit cards
News from Chicago Daily Herald:

This has truly been a golden era for credit card rewards programs.

Card issuers have been dangling rich offers of points, miles and cash back for the past year and a half or so in the quest to improve revenue and profit.

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The targets of this fierce competition: customers with good to excellent credit records. They are the best kind to have in a stodgy economy, especially in the wake of the CARD Act that cut back on the fees that companies can pocket.

More than 60 percent of all credit-card offers include some type of reward, according to Brian Riley, a senior research director at research and consulting firm CEB TowerGroup.

But it’s been the size and availability of some of the biggest incentives ever that have titillated rewards program junkies. Airlines have offered as much as 100,000 miles when customers spent a required amount on new cards. Bank cards have offered $ 200 cash back for spending $ 500. Another gave $ 250 in gift cards when customers spent $ 1,500.

Specific rewards come and go, and have been scaled back somewhat in recent months. Concerns also have arisen that the pending settlement between Visa and MasterCard and retailers could caus…………… continues on Chicago Daily Herald

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The Biggest Credit Card Mistake Entrepreneurs Make –
News from and How to Avoid It – Terra.com:

image credit: Fox Business

More than 80 percent of small-business owners use credit cards, according to the Federal Reserve. But some make the mistake of reaching for plastic too soon when starting up their businesses and reduce their chances for long-term success.

Nearly 60 percent of start-ups rely on credit cards for financing during their first year of business, according to a recent study from the Ewing Marion Kauffman Foundation, and for every $ 1,000 increase in credit card debt, a firm’s chances of survival decrease by more than 2 percent.

What’s so problematic about funding a start-up with a credit card?

It puts personal finances in jeopardy and increases stress. People often assume that small-business credit cards insulate the owner’s personal finances from the company’s. But that’s just not true. Whether you use a business or consumer card, you’re going to be personally liable for debt. So, relying heavily on a credit card for financing could significantly increase the pressure you feel. If things don’t go as planned, you not only will default on your business debt, but you also will face serious ramifications on a personal level.

You will have limited funding. How much money you’re able to glean from a credit card is largely a function of your credit standing and income. Many entrepreneurs are young and…………… continues on and How to Avoid It – Terra.com

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