Texas CPAs Offer Advice When Choosing a Credit Card - KAIT-Jonesboro, AR-News, weather, sports

Texas CPAs Offer Advice When Choosing a Credit Card


This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.


Make a Rewarding Credit Card Choice

Dallas, TX (PRWEB) June 24, 2014

Youre ready to sign up for a new credit card that seems to promise a host of appealing rewards. But are you really sure of what the card has to offer or how it compares with other options? Many people are not, according to a J.D. Power survey, which found that only 59% of credit card customers feel they "completely" understand how they earn rewards. Another one-third knew nothing about the benefits related to their credit card. The Texas Society of CPAs advises consumers to look more closely at their benefitsand termsin order to get the most from their credit card choices.

Consider the Value
When you receive a promotional credit card mailing, check it over carefully to be sure that whats offered is really worthwhile to you. An airline card that promises free trips or upgrades wont help you if you dont travel often, or if there are many restrictions or deadlines on when you can use your rewards. On the other hand, if you spend a lot of time on the road for work or pleasure, the rewards on a gas station card might be right for you. If the card offers the chance to earn gift certificates to national chains, consider how often you really make purchases at those places. You may find your best step is to consolidate your spending on one card that offers cash back for purchases or other rewards you can really use.

Know the Limits
Are you aware of the requirements for earning rewards? Some department store cards feature immediate discounts on purchases, but future rewards may not kick in until youve done a great deal of spending at the store. Cash back programs may involve caps on rewards for some types of spending, or higher rewards for spending on things such as restaurants, gas or groceries.

Understand the Credit Card Terms
Remember, too, that while its useful to know about and take advantage of credit card rewards, its critical to understand the cards terms before you sign up for one. In the J.D. Power survey, only 47% of people surveyed said they "completely" understood their credit card terms. Among them, a total of 73% were uncertain about the cards interest rate and 31% were not sure about late payment fees. Failure to learn about those terms could be a costly mistake. If you dont pay off your charges every month and carry a balance going forward, then you will face ever-increasing monthly interest payments if you have a high-interest-rate card. In fact, after the first month, youll be paying interest not only on your purchases but also on the interest you are charged each month. That means it will take longerand cost significantly moreto pay off your balance completely. If you think you will carry a balance, it may be best to look for a low- interest rate card, even if it offers few if any rewards. Similarly, watch out for cards with high late payment fees to avoid getting penalized if you face a financial hurdle or simply forget to send your check. For more information, the U.S. Consumer Financial Protection Bureau offers a glossary of credit card contract definitions.

Comparison Shop
Given all the many cards availableand the multitude of rewards, rates and requirements for each onedont sign up for an account on impulse. Compare the pros and cons of the most appealing options so that you can make an informed choice.

Consult Your CPA
No matter what your financial question, your local CPA can provide the advice you need. Turn to him or her with all your financial concerns.

TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has more than 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/06/prweb11906192.htm

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

Powered by WorldNow

472 Craighead Co. 766
Jonesboro, AR 72401
(870) 931-8888

FCC Public File
(870) 336-1816
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and KAIT. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.