As you surf the Internet, you probably see advertisements for online reward credit cards. These cards promise that once you get so many points, you will qualify for “free” rewards. These rewards may be concert tickets, a gas card or a gift card. But, are these cards really worth it? If you are tempted to fill out the application to get one of these cards, there are some points you need to consider before you apply.

Annual Fees

The annual fee for reward credit cards can be the sole deciding factor about whether you get the card. High fees eat away at your pocketbook. Sure, a card that has an annual fee of $50 may seem like a good deal since that equals out to just over $4 a month. However, you just save that $4 a month and buy what you want with it instead of having to fork it over to the credit card company with an understanding that at some point in time, you may be able to get a gas card or concert ticket.

Temptation

If you are easily tempted, an online reward card may not be a good choice for you. For some people, just knowing that they have credit available is enough to make them feel like purchasing that pair of $500 shoes is a good idea. However, that same pair of shoes doesn’t seem like a good idea if they have to pay cash. If you fall into that group, pass up the reward credit card.

Flexibility

Some reward credit cards allow you to apply your points to only one item. For example, you may have to decide when you get the card if you want airline miles or gift cards. If you don’t travel a lot, airline miles won’t do you any good most of the time. But, what if you want to go visit a friend overseas? If you opted for a gift card program, you may not be able to transfer your reward points to an airline miles program.

Spending Habits

If you get a reward card, plan on using it only to make routine purchases. The key to using a reward credit card successfully with maximum benefits is that you can only charge what you can pay off in full each month. If you are paying interest on your purchases, you would probably be better off just paying cash for your purchases and saving the money that would go to the interest portion of the bill.