Yearly, thousands and thousands of {dollars} in credit card rewards go unclaimed — cash that may very well be protecting journey, on a regular basis bills, and even money again in your pocket. For those who’re not redeeming these rewards, you are leaving cash on the desk.
As somebody who leverages bank card rewards, I used to be considerably shocked by the latest Bankrate survey revealing that 25% of Individuals did not redeem their rewards final yr.
That represents huge cash. For instance, in 2022, shoppers utilizing general-purpose bank cards from main issuers earned greater than $40 billion in rewards, in response to a 2024 Shopper Monetary Safety Bureau report. “Issuers forfeit, expire, revoke, or in any other case take away lots of of thousands and thousands of {dollars} in earned rewards worth every year,” the company stated.
With a lot content material from social media influencers to monetary consultants highlighting these advantages, the true subject is not simply consciousness; it is execution.
Realizing concerning the reward packages is one factor, however implementing is what truly issues. Like every other facet of economic planning, and not using a technique, these perks might go unclaimed.
Listed below are some key factors for shoppers to know.
Neglected worth of bank card rewards
Many shoppers join bank cards with out completely reviewing the rewards construction and advantages. Monetary establishments usually bury perks in fantastic print, making them simple to miss. Many individuals consider rewards as a “bonus” fairly than a tangible monetary asset that might offset bills.
Unlocking hidden advantages
Past commonplace rewards, many bank cards usually provide embedded perks similar to journey insurance coverage, buy safety and unique occasion entry. These advantages provide cardholders added safety and financial savings past conventional factors or cashback.
Understanding which card provides which profit will help maximize the worth of your bank card and forestall you from leaving cash on the desk.
My household’s real-life success story
I need to share a private expertise to indicate how simply missed bank card perks could make an actual distinction.
A number of years in the past, my son obtained an iPad as a Hanukkah present from his grandparents. Just a few days later, at his brother’s hockey sport, he put it down for only a second to have fun an enormous win — and instantly, it was gone.
He was heartbroken, and my in-laws have been pissed off, assuming it was gone for good. I inspired them to verify the advantages supplied by the bank card they used to purchase it.
After a name to the monetary establishment, they found the bank card they bought the merchandise with had purchase protection, which might reimburse you for lately bought gadgets which might be stolen or broken.
Because of that, the price of the iPad can be reimbursed to them after they submitted some paperwork. Inside weeks, they received their a refund, permitting them to interchange the merchandise. It was a fantastic reminder that so many individuals are unaware of varied perks.
Realizing what your bank card provides can flip an sudden loss right into a helpful lesson and soften the monetary influence.
Shopper takeaways
D3sign | Second | Getty Photographs
- Bank card perks aren’t nearly factors and cashback — they provide hidden protections that may save shoppers hundreds.
- Ignorance is dear. For those who’re not utilizing your perks, you are successfully giving a refund to the monetary establishment; particularly when you’ve got a credit score with a yearly charge.
- If a newly bought merchandise is misplaced or stolen or if an costly merchandise breaks after the guarantee expires do not assume you might be out the cash. For those who paid with a bank card, attain out to your monetary establishment to verify for attainable protection through embedded buy safety and prolonged warranties.
- For those who run into a problem on trip — similar to a delayed flight, misplaced baggage, or canceled reservation — and also you booked the journey on a bank card, name the issuer. You could possibly get reimbursement from embedded journey insurance coverage that may cowl your losses or sudden bills.
- For those who’re involved about accumulating a steadiness you possibly can’t pay in full on the finish of the month, think about making weekly funds or paying off giant purchases instantly. This strategy means that you can leverage the advantages, protections and rewards of a bank card whereas sustaining the self-discipline many discover in utilizing a debit card.
— By Lawrence D. Sprung, a licensed monetary planner and founder/wealth advisor at Mitlin Monetary Inc.
