Wondering if you should get a free rewards credit card?
Well, before you do, keep in mind that there are also a number of rewards debit cards out there such as the one offered by PerkStreet Financial which comes with a $50 cash bonus for eligible new account holders... and there's also the Chase United Mileage Plus rewards debit card, or the Chase Continental rewards card.
I'm a big fan of Chase's rewards debit card products.
The benefits of a debit card are clear: you spend the money in your linked checking account, instead of relying on credit -- which can lead to spending beyond your means, or accruing interest charges if you don't pay off the entire balance before the due date.
Credit card rewards, however, are typically STRONGER than rewards for debit card products -- since the bank makes more money on credit cards, and on credit card transactions... they can give you better rewards as a result, and still make a small profit on each transaction.
A Chase United debit card may come with a bonus of only 2,500 air miles, whereas a similar Chase United credit card may offer a sign-up bonus of 30,000 air miles or so. See the difference?
Still, if you're a believer in debit cards, and hate going into credit card debt, then rewards debit cards seem like a no brainer to me. All of the convenience of a regular debit card, with the perks you've come to expect from credit card promotions.
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