Credit Card Rewards Program Mistakes [+ how to avoid them]

Many credit card companies offer rewards to attract new customers. And it works! A 2018 study found 79% of people choose credit cards for their rewards.

But is it always a good idea to use credit cards for rewards?

Once you sign up for a card, credit card companies hope you’ll continue to use it (and perhaps pay their high-interest rates, too!).

Offering rewards pays off for the credit card companies.

Credit card points and rewards can be beneficial to you too.

They can certainly save you money-when you read the fine print and avoid costly mistakes!

Before you apply for rewards cards, it’s wise to understand the pitfalls.

Read on to learn about the most typical credit card rewards mistakes and how to avoid them!

10 Common credit card rewards mistakes [and how to avoid them]

Mistake #1: Spending more to earn rewards

Many credit cards offer a sizeable sign-up bonus when you meet the minimum spending requirements. For example, you might get 50,000 points when you spend $5000 in the first three months of having a rewards card.