What do you think about the rewards, or points systems attached to your credit cards? Don’t you think that it is scary that these companies offer you points for spending money at a high interest rate? Recently my aunt was going to book a flight to California using her points that she earned with her air miles visa. She had been consistently using her credit card for the last two years to have accumulated a fair amount of points. She went to cash them in to realize that she had only accumulated enough points to cover $200 of her trip. This equated to 20, 000.00 points, and over two years of spending on the card.
So after hearing this I started looking into it, and found that for most reward programs you have to spend a fare bit of money in order to redeem enough points to make it worth your while. These companies are also wondering why Canadians are in trouble, and why no one can afford the cards anymore. I would say that these programs are more designed to benefit the credit card companies don’t you? It’s like Wiley Coyote chasing the Road Runner!
Keep in mind there are a number of reward programs that do not have any credit card attachment to them, these are true reward programs.