Rewards Cards: Are They Worth It?

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Rewards Cards: Are They Worth It?

A lot of credit cards try to sell you on the idea that you'll really benefit from the rewards system, whether it's cash-back rewards or "gifts" earned with points. Of course, the only way to really benefit from this is if you are diligent about paying off your balance before the interest rates set in. Do you have a rewards card? Is it worth using?

I do have a rewards card on my Canadian Tire master card. To be honest I don't know what the ratio is to earn them but I do know I have been able to put over 20.00 worth of loyalty rewards against purchases I have made in the store. I do shop at Canadian Tire quite often so I do see a benefit in this case.

I've gotten a couple of rewards cards in the past. One of them wasn't worth it. The deal was basically for every X amount that you spent you could get a 10% off card to big box stores. The X would change quite often. The first time I got 10% off I used like $100. The last time was probably over $1000 and it took me awhile to get to it.

One of the better cards I've had when it comes to rewards is a dividends card. I've collected $600 over probably 11k spent on groceries and gas over the last 7 years. Its not much but I don't expect to get money from using a credit card and I strictly use it for groceries and gas because the % back on other items are too small for it to make sense.

I have a friend who swears by his points card (Am Ex) but I just don't think you can get decent rewards versus the amount that might be required to spend.

The Alaskan Airline card is worth it. It costs a whole lot to fly down from Alaska. The cards gives you flyer miles and makes it much more affordable. Of course, if you don't pay it off every month then you might as well pay for the flight as the interest.

This varies from person to person.

Some reward cards for me aren't worth it. For example, many of the cards give frequent flyer miles. But the problem is that doesn't do anything for me because I hardly ever fly.

I have Sony card that gives me points. But that works for me because I buy their products and the card also gives me PSN credit which I also use on my Vita and PS3.

So basically, it depends on the person you are and what you use.

I agree with you 4justice. It really does depend on the person. As a whole I think reward cards are quite good but it does depend on your interests and lifestyle.

I have always used a reward card. Since so often we are forced to make daily or weekly purchases, then I like to get something back even if that something is very little. For example the cash-back reward cards often run 5% or more bonus promotions on gas or certain stores. When I had to buy my mower, I got 10% back. Weed-wacker got me 5%. All the gas and bills I pay in a month are garnishing me 1% to 3% cash-back. So in my opinion, since I am still going to have to buy those things, then I might as well get something back for them.

In relation,bank of America has released a new type of rewards card. Rather than rewarding consumers for spending -- which only boosts the amount of their debt -- it pays them when they pay their bill once it is due and they will pay just a little more than their minimum monthly requirement when doing this. In that way, it is incentivizing individuals to handle their loan debts more sensibly. Resource for this article: <a href="">have a quick look at our website.</a>

Well now that certainly sounds like a step in the right direction. Makes me wonder what "the catch" is, though... I mean what do they get out of it? Credit card companies aren't really known to care about how much debt their customers rack up, after all, because it's making *them* money.

That said, since it's BOA, it could probably be trusted. They're getting *something* out of it, though... guaranteed.

My Discover It card has cash back rewards but I don't specifically spend extra money to earn cash back. If I happen to earn cash back in the course of my normal spending, that's a nice bonus , but I don't spend extra to get there. I'm trying to build credit, not build debt.

I'm supposed to be getting 1% cash back on this new PayPal debit card I got recently. However, surprise surprise, in the fine print there are all sorts of exclusions. Basically it's only good for any purchases made over the phone or online, or require a signature. So buying stuff like gas won't count. Also, now that I have the card I can't find any mention on their site as to where to redeem the cash back - it's as though they never offered it.

I don't think it's worth the trouble really. I mean, at 1% cash back, if you were spending $3000 a month on your card, you would be getting back like $30 max. And that's assuming all of your purchases qualified, which many do not.

OhioTom, that's terrible! I hadn't realized that any of those "cash back" cards even had exclusions. (I'm speaking of credit cards here... didn't know debits could offer cash back too... that sounds interesting. Or did before you mentioned exclusions!) :-)

I've heard people saying for years that they use credit cards because they get cash back but they don't realize that they're just paying for that cash they get back elsewhere.

Rewards Cards: Are They Worth It? | ConsumerFu


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