The following is an excerpt from a post on U.S. News that I was interviewed for. To read the complete article visit the link provided beneath the excerpt. The content provided is written by Geoff Williams.
You may be wasting your credit card rewards. At least, that’s the conclusion of an annual Consumer Spending Index released by TD Bank; their late-October study included survey information conducted from March 22 to March 28 from 1,002 consumers. It found that almost one in five consumers (18 percent) have allowed credit card rewards to expire.
That suggests that most consumers – 82 percent – are generally on top of their credit card rewards. But the survey also found that of the 18 percent who sometimes waste their reward points, it’s the millennials who end up wasting them, the study found. Of the 87 percent of millennials who have a rewards credit card, 30 percent of them have allowed reward points to go to waste, as opposed to 19 percent of Generation Xers and baby boomers (8 percent).
That said, we waste food, water, electricity, time and potential – is it so shocking that we would waste credit card rewards, too? Still, if you’re looking for strategies for saving money and not wasting rewards, here’s what you’re probably doing wrong.
You aren’t paying attention to the conversion ratio. Your points convert into dollars or cents. You need to pay attention to exactly what your points are being converted into. For instance, many credit cards will allow cardholders to redeem their points for store gift cards. But if you’re going to redeem points for a gift card, pay attention to how many points will get you a particular gift card.