Rewards Cards: What’s Hiding in the Fine Print?

[UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned below.]

Credit cards are often presented as the best thing since sliced bread. Go to the home page of any popular credit card and you’ll see a list of fabulous features.

But dig deep into the fine print—the terms and conditions and other disclosures—and that’s where you might find out that this isn’t the right card for you after all. The fine print is where the caps, the thresholds and the do-this-and-you’ll-lose-your-rewards stuff lives.

I know the details are really, really boring. But if you don’t read it, you might not even be able to take advantage of the key features that are advertised. Or worse, you might be spending your heart out in the department store category only to find out that the cash back reward had a $300 limit.

Okay, so I have a few examples to give you an idea of what you might miss if you don’t read the teeny tiny print. And remember, this is just a miniscule sampling of what might be hidden in the fine print of almost every credit card agreement.

Blue Sky Preferred SM from American Express®

This card has a rich travel rewards program. It’s attempting to reward consumers for opening an account, but an important detail is left out of the key feature.

Advertised: 7,500 bonus point – redeemable for a $100 statement credit – after you spend $500.

Fine print: You have to spend $500 within 60 days of opening your account to get the 7,500 bonus points. Now, I’ll give American Express credit for adding a tiny, linked footnote to this, but most consumers skim the features and miss the footnotes. If you aren’t planning to spend $500 within 60 days, you’re not getting the $100 credit.

Discover® More® Card

This is basically a good card and there are several variations of it on the market, including great deals on balance transfers. But this card wins the award for using the phrase “up to” more than any other card offer.

Advertised: 5 percent cash back in categories like travel, groceries, gas, restaurants and more.

Fine print: For January – March 2011, you get 5 percent cash back on travel and restaurants, but only up to $800. After that, you get 1 percent on purchases in this category. There’s a “program details” box in the upper right corner on the application page that explains the cap when you click on it. But the details about what happens after you reach the cap is in the Schumer Box (the box containing the terms and conditions), specifically in the “Rewards” section.

Advertised: Up to 1 percent unlimited Cashback Bonus on all purchases.

Fine print: Up to 1 percent cash back after you spend $3,000. For your first $3,000, you only earn .25 percent.

More fine print: The rewards are unlimited and don’t expire, but if your card is inactive for 18 months, you forfeit your bonus points.

More cards »

Image © Moth | Dreamstime.com

SimplyCash® Business Credit Card from American Express OPEN

I like this card for everyday business expenses. But the true value to you depends on how much you spend per year on wireless services, gas and other purchases.

Advertised: Get 5 percent on wireless service and office supplies, 3 percent on gas and 1 percent on everything else.

Fine print: I’d like to give American Express credit for at least footnoting this, but they didn’t make it a live link. So I had to go search for the text that went with the footnote.

I found the footnotes below the Schumer Box (so technically, this is the fine print below the fine print) that says the 5 percent is limited to $12,000 of eligible purchases from wireless service providers and office supply specialty retailers. And this is offered during a 12-month period that begins on the anniversary of your card account opening. After you reach the cap, you get 1 percent.

The $12,000 limit also applies to the 3 percent gas rebate. You get 1 percent after that. And just in case you’re planning to save tons on gas at warehouse stores, you don’t ever get 3 percent there, just 1 percent.

Citi® Platinum Select® MasterCard®

It’s not just rewards cards that have hidden nuggets. This card is known for its 18-month balance transfer introductory period. But if you don’t read the fine print, you might not be aware that it’s possible you’ll only qualify to transfer a small amount or that there’s a time limit on the offer.

Advertised: 0% Intro APR on balance transfers for 18 months.

Fine print: Some credit limits may be as low as $500. You may transfer any amount, but the total amount including any balance transfer fee (4 percent for this card) must be less than your available credit. This makes sense, but I know many consumers hope they can transfer large amounts and get relief.

More fine print: You get the 0 percent introductory APR for 18 months only if you make the transfer within four months from the date you opened the account. If you qualify and you get a credit limit high enough to accommodate the balance you want to transfer, don’t put it off.