Are credit card rewards points worth it?

Are credit card rewards programs worth the hassle—or the cost? It all depends on you and the rewards you want. For example, airline miles can be difficult to redeem, with blackout dates, limited seats, and inconvenient flight times being just a few of the challenges. Comparably, hotel and merchandise points are relatively easy to earn and redeem, as are cash-back rebates. But is accruing a credit card balance worth it in return? We think so—if you use your card responsibly. Below are a few tips to consider about your credit card’s rewards points:

Get the right credit card

There’s no one-size-fits-all credit card, so it’s best to make sure you’re using a card that pays back in rewards that match your spending. If you’re primarily using your credit card to earn points for travel, consider a card that pays in miles or free hotel stays. Or, if you find you’re always grocery shopping for your family, consider a card that earns high cash-back rewards at supermarkets. Finding a card that works best for your spending is crucial to maximizing your rewards.

Understand your credit card

You need a clear and detailed understanding of your credit card’s rewards program. Many programs set minimum spending requirements each month before points can be earned, while others have minimum redemption requirements. Miles sometimes can only be redeemed on one named airline. Big cash-back advertisements may be for a limited time or restricted to specific shopping categories. Each program is different and unique, so heed the small print. There are also credit card terms to consider. Rewards credit cards typically have a higher APR than a non-rewards card, so make sure you can pay your statement balance each month. If you can’t, the cash-back bonus won’t make a dent in the interest you’re accruing. And, some credit card companies charge a hefty annual fee.

Don’t be tempted to overspend

If you’re spending money—which you probably are—why not get something in return? Credit card rewards points are a great option for consumers who love to travel, can be flexible, and are organized enough to keep track of offers and deadlines. The points that can be redeemed for cash are even better. But, it’s crucial to keep your spending in line. While it may be tempting to rack up your spending to earn more points, remember to spend within your means.

Maximize the benefits

To make the most of a rewards program, you should plan to use your credit card frequently—you should also try to maximize the benefits. You don’t need to change entirely how you spend, but it doesn’t hurt to be aware of your credit card’s rewards categories—especially if you use multiple credit cards. If one of your cards earns 5% cash back at a department store and the others earn 1%, don’t miss out on the higher return rate. Other cards have quarterly rotating rewards categories, so keep an eye out for those, too.

Ask any group of people why they chose a given credit card, and a vast majority will say it’s the rewards that reeled them in. For some consumers, they work. For others, they sound too good to be true. But, understanding the details and knowing your spending habits are what will help you choose the card that best suits your needs and make the most of your rewards points.

If you’re looking for a credit card that offers tremendous rewards, competitive rates, and more, then a Georgia’s Own Visa contactless credit card is for you. You’ll enjoy fantastic features, including no annual fee, enhanced fraud controls, and Flex Rewards to redeem for cash back, gift cards, and more.* Plus, through December 31st, you can earn up to $150 when you open a new Visa Signature, Platinum, or Student Visa credit card.** Ready to make your purchases count? Click here to start earning now.

*Georgia’s Own Credit Card points will expire five (5) years from the date earned. Points, including any rollover points or points transferred from an existing Georgia’s Own Credit Card, will not expire before May 31, 2023.

**Promotional period begins January 1, 2022 and ends December 31, 2022. Open a new Georgia’s Own Visa Signature® card and spend $1,500 in the first three months of account opening and earn 19,500 points, which can be redeemed for $150 in cash back. Open a new Georgia’s Own Visa® Platinum card and spend $1,000 in the first three months to receive 13,000 points, which can be redeemed for $100 in cash back. Points will be applied within three billing cycles if the account is in good standing. Offer may be withdrawn without notice.