Credit Card Rewards

[al0061]

I haven't seen any mention of credit card rewards programs here. (I haven't read everything yet, though.)
Thought I'd contribute my 2 cents.

I have 5 active credit card accounts. Three have 'rewards' programs. I've found that remembering this fact can be very helpful.

While the accounts had balances, I was able to redeem the rewards points for credit to the accounts. My total rewards redemption has gotten to $75, applied to the outstanding balances. Very cool.

When I paid off the last of the accounts, I redeemed my last 'set' of points for a $25 gasoline card, which will hopefully arrive in the next few weeks.

So, over the last year, I've gotten $100 out of the rewards programs.

Many of the points were credited at the time I did the balance transfer from a higher rate card to a lower rate card. I don't think they all do this, but mine did.

Bottom line? Rewards programs can be used to improve your bottom line, if you don't use them to get 'stuff', but apply them to your balances.

Torch

[neatdesign]

Originally Posted by al0061

Bottom line? Rewards programs can be used to improve your bottom line, if you don't use them to get 'stuff', but apply them to your balances.

I've found that the people who benefit the most from rewards cards are those who 1) pay their balances in full each month; and 2) are the type of people who actually take advantage of the rewards program.

If someone carries a balance on their credit cards from month to month, not only are they accruing interest but also have less room to charge to the cards and get more rewards points. Those who pay-as-they-go can rack up the points quite nicely, as they keep opening up more available credit to use and charge with. At the same time, they're basically getting rewarded for using a 20-to-30-day interest-free loan.

There are lots of people who simply wait too long to use their rewards, too. Many rewards programs have a fixed validity period for the points -- for instance, 5 years from when they were earned, etc. By the time people get around to remembering to redeem their points, they've started to expire. Bit of a waste, isn't it?!

And I think you can benefit from using the points in ways other than applying them to your balance. Taking a free trip, or buying gifts for people. It all really depends on what your needs and interests are.

~ Jenney

[2moretrees]

You have to be very careful with the reward cards. When I had mine, I used to use it as an excuse that it was okay to buy something. "I get miles toward a ticket, why not?" attitude. If you have the sicsipline to pay them off, I think they're great. You need to be very aware of what motivates you to spend though.

[dealsaver]

If you have a high volume/low margin business, rewards credit cards can add to your bottom line.

[ken1706]

Yup, if you're careful with your spending and don't carry balances, reward cards are great.

I've been using Citi Dividend Platinum Select Card and getting 5% cash-back at grocery stores, drug stores and gas stations. A $2.80 gallon of gas becomes $2.66 when you use this credit card.

There was a thread last month with some discussion on the best reward credit cards.

[zakity]

I use my credit card rewards program all the time, but I also pay my credit card off every month. We put things on it like groceries and gas that we have to buy anyway. In fact, I "bought" part of xmas using my points.

[jmjj215]

When someone says to not spend the points on "stuff" but to apply it to balances, my alarm goes off. Why the heck is there a balance?!