What You May Not Know About Credit Card Rewards Programs | Refresh Financial

What You May Not Know About Credit Card Rewards Programs

 Credit Card Rewards Programs

Credit card reward programs can be pretty enticing. There are so many seemingly great deals that it’s difficult to choose just one. Do you opt for loyalty points at your favorite grocery store? Perhaps you envision yourself jetting around the world on your travel miles, or maybe you want to earn free gas with every purchase. But before you make any decisions, there are a few things you should look at and consider. We've compiled a list of things you may not know about credit card rewards programs & how to avoid it.

1. Rewards Might Not Win What You Want

- There are usually stipulations in regards to what you can redeem your credit card points for. For instance, it's possible for credit card companies to change the rules mid-game. Maybe you've been collecting points for gas, but your credit card provider no longer supports that particular reward. If this happens, you can no longer redeem your points! Choose a reward card that has been consistent with their points so that you're not earning rewards in vain.

2. Rewards That Expire

- Did you know that most rewards programs have points that expire? It’s important to familiarize yourself with the expiration policy of the rewards program you’re considering, otherwise, you could lose your progress.

3. Rewards Can Lose Value

- Some rewards programs will occasionally devalue their points. That means that redeeming 2000 points will not buy you as much as it might have before. Research the rewards program and look for instances of devaluing points in the past. If they’ve done it in the past, they are likely to do it again in the future. Perhaps avoid this reward program and choose one that has points that have remained a constant value since the program’s inception.

Before you sign up for any credit cards with rewards programs, do your research. Find out what other consumers feel about redeeming points: How easy is it? How often do the rules change? Do your rewards expire?

Another alternative is to choose a credit card that offers money-back on your purchases. It’s easy, and the money is automatically credited back to your account.

Have you ever had trouble redeeming credit card rewards? Let us know in the comments!

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