Many Americans are missing out on credit card rewards, according to a recent Bankrate survey. About 40-percent of U.S. adults lack a rewards credit card, and 23-percent of rewards cardholders didn’t redeem rewards in the past year. Bankrate Senior Analyst Ted Rossman says many people are missing out.
“Maybe because they forgotten how much they have or they don’t realize how much its worth or its just out of sight, out of mind, but these programs are worth big bucks. This is real money here.”
Cash back is the favorite feature for 50-percent of cardholders, particularly among older and middle-income earners. Travel rewards appeal more to high-income groups but require more effort to maximize. Rossman says get a cash back reward to keep it simple
“Get a 2% no annual fee cash back card. Something like the Wells Fargo Active Cash or the Citi Double Cash. Its essentially a 2% rebate on everything you buy.”
Despite the appeal of rewards, many Americans miss out by failing to redeem them, highlighting a significant opportunity to capitalize on “free money” from strategic credit card use. Rossman says find out how many points or rewards you have and come up with a plan to use them.
“You want to earn and burn strategically. Don’t save them up forever and ever. You want to actually have a plan to use them too.”
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