Credit card rewards which are not as good as they seem

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Credit card rewards which are not as good as they seem

Credit card rewards which are not as good as they seem


Updated: December 26, 2012

By
Add to Favorites:
Credit card rewards are often used by credit card issuers to attract more and more customers. Since there is so much competition between credit card companies, credit card rewards often decide which card is chosen and which one isn't. However, not all credit card rewards are as good as they seem and there is a catch invariably. This is one of the main reasons why credit card customers should take a deep look at the fine print and see if they understand all the terms and regulations of the credit cards properly. Cash back offers Cash back offers are amongst the most attractive incentives provided by credit card issuers to the customers. However, cash back offers are not always as good a prospect as they seem. To start with credit card customers are led to believe that they would get back up to 5% of their expenditure back. The first catch is that there is an upper limit applied by most credit cards on the amount of cash that can be returned. Not only is there a limit on the monthly cash back, there is also a limit on the cash back for a year. This means credit card customers do not usually get as much as they are supposed to. This is one reason reading the fine print is extremely important. Another problem is the mode of cash back. While some credit card issuers send a check back, this is not always the case and others make it redeemable through future purchases, which cannot exactly be termed as a cash-back offer. Frequent flyer miles Air miles are another reward that customers with high credit and expenditure patterns usually like as it would provide discounts on air tickets. However, it is very hard to redeem these flyer miles on ticket, especially with a lot of restrictions and only a few seats per plane that are allocated to such rewards. This is mostly to discourage credit card customers from going for such discounts. Usually flyer miles also are due to tie-ups with one or two airline companies and those might not be the ones usually preferred by the credit card customer. Loyalty points As customers spend on credit cards, they get loyalty points. These loyalty points can be redeemed later. However, there are only some select merchants where the loyalty points can be redeemed. Secondly, not all purchases can be through these loyalty points. Often these loyalty points can only be redeemed through discounts on additional purchases after you have bought fixed amount of merchandise from these merchants. In fact many of these rewards turn out to be strategies to make the customers even spend more. This is because most of the rewards could be redeemed through select purchases at select merchants. Some of these venues might not even be the ones usually preferred by the credit card customers. This is why the loyalty points and discounts are not often as attractive as they seem to be initially.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading
Affirm: A ‘Friendly’ Credit Alternative

Affirm: A ‘Friendly’ Credit Alternative

By Angela Rose, Posted: April 5, 2017

In 1789, Benjamin Franklin wrote, "In this world nothing can be said to be certain, except death and taxes." His statement holds true even today - especially when it comes to personal finance tools such as credit cards. Continue reading