I'm a big fan of rewards credit cards. The way I look at it, if I'm going to charge something anyway, why not get something out of the transaction? (Besides a bill at the end of the month, that is.)
So I was intrigued when Fidelity announced last month that it was introducing a Retirement Rewards Card. Basically, for every $1 you charge to the card (from American Express), you earn 2% toward a Fidelity IRA account. Since most Americans aren't saving enough for retirement, this gives them one more way to sock cash away for the future. With no annual fee and no cap on rewards, it seems like a no-brainer, right?
From Real Simple: Credit Cards 101
Well, not exactly.
Rewards cards are good options for certain kinds of spenders, and this one's no exception. For instance, if you carry a balance, this isn't the card for you, since it carries an interest rate of 16.99% -- fairly high compared to the 10.84% average, according to Bankrate.com. Miss a payment, and that rate willRead More »from Can credit cards help you retire?