Rewards Cards May Not Save Cash
Date:June 3, 2008
Columbus, GA (WTVM)- I'm sure you've seen a key chain full of them, or maybe you, yourself are a card carrying member. I'm talking about those rewards programs and the cards that come with them, offering the promise of more savings.Best Buy, CVS, Pet's Mart, Winn-Dixie, Auto Zone, Pet Co., Sally's and a Publix Card. I do a lot of shopping, a lot of shopping, so I like to save money,says shopper Desiree Topor as she shows us all of her rewards cards.But research shows consumers like Topor may not be saving much at all.Experts at Consumer Reports say they found it's tough to reap the benefits of a rewards program.
The programs are very complicated, they're kind of full of gotchas like other credit cards, so you have to be very careful,says Amanda Walker, Senior Project Editor, Consumer Reports.There are programs offered at grocery stores, pharmacies, and even those that double as credit cards.Plus, there are range of rewards, but experts say that's where things can get tricky.
There are different ways to earn your rewards, the most generous programs tend to give you cash back.The points programs get a lot more complicated,says Walker.But, if your wallet's already stufffed with a few, there are some ways to save with rewards programs.If you just really plan ahead of time, pick the cards that give you the biggest discounts for the places you already shop,says Walker.Another tip...project your spending to determine what you'll get back in cash or points.
If it's points for example, find out how many you need to get something you want. Next, opt for cards that offer cash back. Experts say you may never redeem points, so at least you get something out of the deal.If a reward card offers airline miles, use them fast! These days, it's getting more difficult to cash in frequent flyer miles, so experts say rack them up and use them as quickly as possible.And lastly, avoid temptation. Research shows people who use rewards cards actually spend more. For shoppers like Topor, it's at least worth a try.I mean, they're free, so why not,she says.
Source:http://www.wtvm.com/Global/story.asp?S=8419818
