Credit cards may be sitting in your wallet right now and you may be wondering if there’s any true benefit to them right now. If your credit cards happen to be travel credit cards, they may be beneficial even though you’re not traveling at the moment. For other kinds of credit cards, there are rewards as well, but your situation may help you identify whether the rewards are worth utilizing or not.
Finder.com released a guide on what to do with your credit card rewards during the Coronavirus Pandemic. Here are a few highlights from their guide:
- Your program might allow you to donate your rewards which could be an option if you don’t foresee any clear use of your rewards anytime soon, and it can be a nice gesture in these uncertain times. Keep in mind you might not get a great value for donations compared to other redemptions.
- If you’re carrying a balance on your credit card and accruing interest, use your rewards to pay down your balance, as the interest you accumulate is effectively eating into your rewards.
- If you have rewards in a frequent-flyer program or hotel loyalty program – keep your rewards. Redeeming your rewards for other options will likely give you such a poor value that you’re better off sitting tight, even if it means your points or miles could be worth slightly less later on.
Insight from a Credit Card Expert
Finder.com’s credit card expert, Kevin Joey Chen, provides some insight on what you should consider when deciding if those credit card rewards are truly worth it or not:
“Around the world, consumers with credit cards are asking: ‘Should I keep my rewards during the coronavirus pandemic?’
There’s no single answer to this — it depends on each cardholder’s unique situation. The main factor is whether one’s rewards will be worth more now or in the future. To gauge this, a cardholder should evaluate factors such as their level of debt, what type of rewards they have, the expiration policy of their rewards program and redemption options available to them right now.
While there are many factors at play, there are rules of thumb that will apply in most cases. If you have cash back, redeem it now. If you have points or miles, keep them until you’re ready to book travel again.
The reasons are simple: The value of cash back doesn’t usually change, so you’re better off redeeming it immediately. Meanwhile, points or miles typically offer the highest value for travel redemptions. They might offer poor value for other options, so you should avoid using them for potentially less-lucrative choices such as cash back or merchandise.
There is an exception: If you’re carrying debt on your credit card, strongly consider using your rewards to pay down your balance. That’s because you want to avoid interest, which is eating into your rewards right now.
Made up your mind yet?
If you’ve decided your current credit cards are insufficient, maybe it’s time to find a new one that is actually suitable for you. There is a credit card that is especially great for remote workers, which may be the way most of us work for a while. Your credit card rewards should be useful to your situation and even during COVID-19. So if remote work is going to be in your life for the long run, this may be the card you’ve been looking for.
The post Are There Any Benefits To Keeping Your Credit Card Rewards During COVID-19? was first published on Coworkaholic.