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The Pitch – Do you think credit card rewards are worth the effort?

May 29, 2009 – 11:40 am – No Comment

Are reward credit cards worth the effort?

Question:

I have recently tried to book a flight though my credit card reward system, and I didn’t know that it couldn’t be partially be paid for with reward points. I really didn’t know that you couldn’t do that. I have had this Citi card open for more than 4 years and have yet to see any “real” rewards from having it and spending thousands of dollars on the card. So, are reward cards really worth the effort?

Answer:

Yes and no. If you were going to spend that money anyway, then the card is worth it, but if you were going to carry a balance on the card then no.

After looking into Citicard practices, I noticed that they charge $25 for 1,000 “Thank You” points. It takes 22,000 (minimum) to book a flight anywhere. So, they expect you to spend a whole lot of money to take a flight that would cost you $200 on Orbitz or Priceline?

Again, if you were going to be using this card for purchases anyway, then go ahead, but if you’re using this card simply for the rewards and carrying a balance then…well check your APR.

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