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Are Credit Card Rewards Really Worth It?

One way credit card companies reward your business and loyalty is through a credit card rewards program. The schemes may vary among companies, but the basics are pretty much the same. You earn points for money spent using your credit card.

Some think it’s a subtle way that credit card companies hook you into using your credit card and to keep spending. Others think it’s a legitimate and worthwhile way to get something back from your card provider. Are credit card rewards worth it? Here are some factors to consider.

Bonus points

Bonus points are valuable for customers when the returns are generous. In some cases, credit card companies will give you a windfall of welcome bonus points after signing up. For instance, American Express Platinum gives away 60,000 points within 3 months after an accumulated purchase total. Some sign-ups come with instant bonus points awarded.

Double or Triple Points

When scouting for a credit card provider, you’d do well to search for companies who have a habit of doubling or tripling your points when you purchase from a particular company or brand. These have regular tie-ups with those brands and normally conduct promotions during the year.

Free Miles

If you love traveling, mile rewards are worth it. Some credit companies are more generous with giving away free miles points for every dollar you spend. You can find testimonials of credit card owners who’ve been able to treat their families to international holidays by using their mile rewards.

Company Partners

Credit card rewards are fun and so worth it if your credit card provider has a lot of partners. You get points by shopping at their network grocery chains and gas stations. Some also partner with restaurants and cafes. Other partners can be department stores, mobile companies, and even airlines. When deciding which credit card company to sign up with ask about their partners and their rewards scheme. That may prove to be a real money saver for you.

Membership Privileges

You’ll find some credit card companies that are low on cash and miles points, but they are high on membership privileges. Examples of these perks are access to airport lounges and gyms and travel insurance. Some give annual travel credit and purchase protection.

For the big spender, accumulating credit card rewards can come quickly. These consumers easily find themselves redeeming points and enjoying free products. For those who reserve their credit cards for rainy days, the rewards may not come quickly. But, you’ve got nothing to lose and everything to gain, one point at a time.

It’s also important to maintain discipline in your spending and payment habits. Spend only what you can pay back and try not to miss a payment date. This way, debts won’t pile up and interest charges won’t blow up.

So, in closing, are credit card rewards worth it? You decide.

Image by Pixabay

Post Author: Lillia Hall

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May 2024