Monday, October 21, 2013

Messages From Readers: Examples of Credit Card Rewards

Credit card rewards are a little bit like gifts. But not for free!
A while ago I wrote a post about credit card rewards and asked if you guys thought they were worth it. I got a couple of awesome comments where people gave me specific examples and proof that rewards are worth it. 


"It truly depends on your spending habits, as a college students my expenses are not as immense as someone who takes care of a family. My parents [buy] a lot from costco and we did the math and it was actually beneficial for them to take out the high reward cash back with maintenance fees card. They have the American Express. I believe the charge for yearly fee for Costco card with American express was about $50-80 for the high reward card but we got 3% (cash back, no points) on gas and 2% i think on items in store. Due to there being 3 cars in the family as well as them having 4 kids, the cash back form the card covered the yearly fee as well as getting back an average of about $100-150 per year. 

So in all I think it really depends on your spending habits." 

-Plank ton 

"I agree, I think it all depends on your spending habits. And I think this applies to anything that offers you rewards as incentives, not just credit cards. You should always calculate the costs and benefits and see if this will really be worth it in the long run. And don't fall into the traps. Like, the AMC Movies Rewards membership is $12 a year, which is not that expensive. You get one free movie ticket for every $100 you spend. You should be smart and not just go spend $100 on movies just to get that one free movie ticket. Other things like Amazon Prime. Is it worth it to pay $80 a year for membership? It is if you really do want the benefits and you actually buy stuff from Amazon like at least 20 times. Other things, such as Papa John's Reward points, where you get 1 point for every $1 you spend, and 25 points gives you one free pizza. That's just about buy 2 large pizzas, get one free. Since this is a free membership, don't just go and buy 2 pizzas every time just to get that one free pizza if you really don't need to. Be smart and just let it accumulate naturally, it's free after all.

It all depends on if the benefits are actually beneficial and if the benefits outweigh the costs. Be smart, and don't fall into the traps." 



I think it's always worth it do some calculations because ten minutes of simple math could help you save a lot in the long run. :D

As always, contact me with questions or suggestions! You can either comment directly on the post or send me an email to 

Photo credit: SalFalko via photopin cc

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