Are credit card rewards worth it?

Are credit card rewards worth it?

(WWBT/WXIX) - If you have a rewards card, odds are good you are not making the most of all of those rewards you’re earning, especially if your card comes with an annual fee.

The average annual fee for a rewards card is about $60, and the average reward point is worth a little over a penny. You’d need to spend about $5,000 a year, or more than $400 a month, just to offset the fee. And if you carry a balance month to month, that will wipe out any benefit you get from those rewards.

Another problem is one out of every five consumers didn’t redeem any rewards points in 2017. Often it’s because they’re banking up airline miles, so they can cash them in for a big trip.

Miles, however, are often devalued by frequent flier programs, meaning it’ll take more of them to make that trip. Buried in the fine print of your card agreement is likely a line that says they can change the terms of their rewards program at any time.

If you aren’t using your rewards enough to justify that annual fee, look into no-fee options, or look for a card with cashback rewards rather than air miles.

Copyright 2019 WXIX. All rights reserved.