Should you be considering a rewards Mastercard versus a tradtional credit card, here are a couple of things that you should consider.Most of the time, you should shop for a traditional credit card with a low rate and good terms, rather than a rewards card that you will not use.    

However, with the popularity of rewards cards, many consumers can find a rewards credit card that will offer significant advantages even with less than optimal terms if they can actually use the rewards.

Take a look at this article and learn how to evaluate the benefits of each type of credit card without falling into the common traps.

Apply For A Credit Card With No Frills

When consumers apply for a credit card, they often fail to look beyond the low  or 0 interest credit card offer.  However, they need to calculate the total cost of carrying a balance on the card.  

In fact, for the consumer that carries a balance, a traditional credit card with a reasonable rate of interest and other terms will more than offset the fickle and fleeting benefits rewards card – particularly where the consumer probably will not use the “rewards.”

If you fall into this category of credit card user, it would be wise to compare several credit card offers before making a final decision.

Evaluatiing A Rewards Charge Card Application

I have a buddy that flies all of the time.  In fact, he has logged over 100,000 frequent flyer miles in recent years.  

He uses a rewards credit card that offers additional frequent flyer miles and thus qualify him for deep discount, or even free, airfare to the destination of is choice.  Because he does not carry a balance, the interest rate on the card is not of any concern to him

In his case, Frank is much better off carrying his rewards credit card than worrying about a traditional no frills credit card.

Decide Which Credit Card Application Is Best For You

Everyone should evaluate credit card offers in light of their unique circumstances.  Often, it is not wise to rely on the conventional financial advice of picking the credit card application with lowest interest rate and “best terms.”  

On the other hand, those who carry a balance or anticipate a large installment purchase may be better off looking for 0 interest credit cards with good terms and a low APR – particularly if it is doubtful that they will take advantage of the rewards offered under the rewards credit card.  

In summary, each consumer has to decide for himself whether or not to apply for a credit card with rewards or choose a no frills traditional credit card offer.

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