Credello: How Credit Card Rewards Are Helping With Inflation
NEW YORK, September 21, 2022 (Newswire.com) - We all know that inflation is a real thing, and it's getting worse. But what do credit card rewards have to do with inflation, and can they help your finances? Here's what you need to know.
1: Rewards can help you save on everyday purchases
Many credit cards offer rewards programs to customers to entice them to use the card for regular purchases. But did you know that your rewards can save money on the things you already buy? It's true! Cash back statement credits or even bonus rewards points can mean you get something extra back for the things you planned to buy anyway, making a credit card a better tool for your financial arsenal, especially if you're comparing a personal loan vs credit card. Personal loans won't give you the same type of return as a credit card, so it's worth considering which option is best when you need to borrow money for the short term.
2: Rewards can help you get ahead financially
Rewards programs aren't just about getting extra back for your everyday purchases - they're also about building your credit history. If you use your card regularly, the issuer may see that you're a responsible customer and offer you lower rates on future loans or credit cards. As a result, every little bit helps with getting ahead financially - and that goes for rewards too.
3: Rewards can help offset inflationary costs
It's no secret that inflation is a huge problem these days - it's been affecting everything from the cost of groceries to the value of our retirement savings. Luckily, rewards programs can help offset some of those costs. Say you're getting a statement credit for spending $1,000 in the past month - that's money that's going away from the inflationary pool and heading straight towards your savings account by knocking that money off your credit card bill. Not only does this mean you're getting ahead financially, but it can also help to keep your spending under control.
4: Rewards programs can be useful for long-term savings
Rewards programs can also be helpful for long-term savings. If you use your card regularly to make small purchases, then over time, you'll accumulate points that can be redeemed for items like gift cards or merchandise. This can be a great way to save money on things you need or want without having to go through the hassle of setting up a special savings account or making extra changes to your budget.
5: Rewards programs can give you a better quality of life, regardless of inflation
Let's say you're a stay-at-home mom who loves to cook and bake. With inflation on the rise, your baking supplies are starting to cost a bit more monthly. But by enrolling in a rewards program that offers cash back on your purchases, you can keep enjoying your hobbies without worrying about the price of ingredients going up too quickly.
Alternatively, many reward points are transferable to travel partners, including airlines, cruises, and hotels. If you accrue enough points through your normal spending activities, you may find that you can afford a much-needed vacation without having to do anything extra.
The bottom line
Rewards programs can be a great way to offset inflationary costs, keep your spending under control, and build up savings. If you're looking for ways to get ahead financially in these challenging times, rewards programs might be just what you need.
Source: Credello
