Common Credit Card Rewards Mistakes to Avoid
Carrying a balance and overspending
The two costliest mistakes are carrying a balance, where interest dwarfs any rewards, and spending more because a card makes it feel painless. Both turn a rewards card into a money loser. Rewards only work on spending you would do anyway and pay off in full, as covered in rewards and carrying a balance and do rewards make you spend more.
Fee and redemption mistakes
Paying a premium annual fee for perks you do not use is a common trap, so confirm a fee card beats a free one on your spending. On the redemption side, hoarding points lets programs devalue them, and cashing out flexible points at a penny when a travel transfer would be worth more leaves value behind. Value points honestly per what a point is worth.
Using the wrong card for your spending
The quiet mistake is using a card that does not match where your money goes, so you earn the base rate on categories another card would reward. Fixing it is easy: enter your spending into the credit card rewards calculator to see which card actually earns the most, then read how to tell if you are leaving rewards on the table.
Frequently asked questions
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