Saving With Credit Cards
Now here is a type of credit card that you can use without feeling guilty – at least that is the claim. Used rightly, these reward cards can help you fatten your savings, retirement and college accounts. But if you use them wrong, you may wind up further in the hole. So what exactly are these cards? These are reward cards offered by a number of financial institutions. These cards promise to help you boost your net worth by contributing to your savings accounts, your retirement plans, your college funds or even your mortgage.
And they are being marketed as the perfect antidote to the country’s miserable personal savings rate – which if you didn’t know, has been dropping below zero every now and then). Two of the most recent entries into this field are Bank of America’s Keep the Change debit card program and American Express One’s Savings Accelerator. However, this antidote isn’t without problems. Msn.com reports:
Each of these cards, however, has traps for the unwary that could undo most or all of the benefits they promise. You should read the fine print of each offer, note how rewards are accrued and refrain from carrying balances; otherwise, any benefit you get from the savings reward program will be more than wiped out by interest costs.
Read more: Credit cards that help you save