Are Credit Card Rewards Programs Worth It?
Are the credit cards with rewards programs better than the regular credit cards that don't have any type of reward for spending more money? Most rewards programs have confusing rules and restrictions that make it more of a hassle than they are really worth. Most consumers do not read the fine print on their applications that may limit the rewards to certain brands or expire after a certain time frame. Many of the point system types of rewards encourage you to spend more before your "points" expire there by making you start all over again trying to accumulate more points.
Of the different rewards programs available on the credit cards, the most popular is the cash back program. The idea behind this is that the consumer receives a percentage of what they spent back in either a check or credit on their next bill. The percentage amount you get back is dependent on what you bought and where you bought it. Many people are drawn to this type of program as they see it as a way to get some of their money back on certain items they would have had to pay for anyways. While these types of rewards can seem attractive, consumers need to be careful because they often carry a higher annual percentage rate and if you don't pay off your bill at the end of the month, you "cash back" could be wasted on the interest you are paying.
Consumers also have to be careful about any annual fees that some of the credit cards charge on their rewards programs. Paying to be able to get the reward makes the value of the reward less. Some consumers also forget they've signed up for their rewards program attached to their credit cards. It's been found that more than 40% of the rewards program members don't even redeem their rewards. If you are going to sign up for credit cards that have rewards programs
, be sure to read the fine print and do the math. Make sure you will take advantage of the rewards otherwise you might as well stick to a regular credit card. For more information please take the time to check out our website.