|
The financial powerhouse known as Wells Fargo has unveiled an intriguing new credit card reward program. The program targets Wells Fargo's mortgage customers and the offer's selling point is something called the "Home Rebate Card."
The card is a standard Visa with a twist. Every time the card holder buys an item with this Visa, he or she can earn cash which can be applied to the principal on their mortgage. According to Wells Fargo's news release, the rebate will be payable in $25 increments. In addition, "there is no cap on the amount of rebate customers can earn."
Such a card gives home owners extra incentive to purchase with plastic. But Wells Fargo is certainly not alone when it comes to unique credit card reward programs. For instance, HSBC offers something known as the American DreamCard, which allows cardholders to earn chances in a sweepstakes. The sweepstakes prize can run as much as $75,000. HSBC has been awarding the prizes since 2004 and has earned rave reviews for the program—it was honored with an "Oscard" award, an award which recognizes stand-out reward and rebate programs offered by credit card issuers.
However, industry observers say that consumers need to do a careful cost-benefit analysis before signing up for such cards, whether their intended commitment is for the short-term or the long-term. For instance, many of the reward cards require an annual fee. In addition, the cards may have interest rates that are less attractive than other cards you might be able to obtain.
By doing some comparison shopping, you should be able to determine whether the risks associated with such cards are worth the rewards. As with any other credit card offer, consumers are advised to proceed with caution, using "buyer beware" as their credo. Otherwise, consumers could end up with some unpleasant surprises when receiving monthly statements.
More Information:
|
