While applying for a credit card, it is a common practice to look at the credit card rewards, but not many of us look at the disadvantages of a credit card. Listed below are some of the credit cards rewards as well as some of the disadvantages of a credit card.

Some of the credit card rewards are cash back rewards, air miles and points system. Cash Back Rewards are rewards where the customers get a cash rebate, which is generally some % of the amount spent.  Earning air miles is where some credit cards allow the customers to earn air miles on their card. One of the other credit cards rewards is the points system where each pound equals to certain points and these points could be further redeemed for shopping or vouchers etc.

Cards that offer reward point schemes often need frequent usage to make these rewards useful. The benefits gained are wiped out by interest charges if the full balance is not paid off. Also, there would be some transaction fees that are charged when buying certain items, and of course the annual fee.

Thus, it is important to consider these things before applying for a card rather than only look at credit card rewards.