Credit cards are used by consumers for a variety of purchases and have proved handy in many occasions but now industry experts are warning that reward cards can be costly. Studies show that many consumers maximise use of their reward credit cards in order to capitalise on rebates. According to MSNBC website, get caught up in the reward card craze and you can easily bust your monthly budget.

 Curtis Arnold of North Little Rock, Ark. pays with plastic and told MSNBC: “We use our card for literally everything,” he says. “Any purchase over $5 we put on our credit card and we do that is to maximize our rebate.”

Along with the basics, food, gas, restaurant meals, and travel, Arnold and his wife use their credit card to pay medical bills and make charitable contributions. Their monthly cell phone bill is automatically charged to the card.

He says: “I’m really hooked on them.  “I derive extreme satisfaction from having the credit card companies pay me back.” It’s easy to see why. Last year the Arnolds made $1,000 by using their cash-back card.

Arnold, who founded the website CardRatings.com, knows there’s a dark side to reward credit cards and has warned consumers to be careful with their spending: “Studies have shown that consumers do spend more on reward cards.”