Ask Sid Credit Card Rewards, Cash Back and Air Miles - AARP Bulletin

Ask Sid Credit Card Rewards

Q. My new rewards credit card sounded great, but my cash back has been less than rewarding. How do I get the real scoop on these plastic promises? A. You're not alone in your disappointment. Although cash back, free air miles and other incentives sound great, there are so many strings attached to reward cards that both Consumer Reports and conclude in recent studies that most folks are better off with no-frills plastic—especially if they carry a balance. Reward cards typically have higher interest rates and annual fees, and rewards are often capped. Rewards may also be contingent on your meeting high spending minimums ($6,500 a year in the case of CR's top cash-back pick, AmEx's Blue Cash). And restrictive or confusing definitions of what’s included in cash-back promises may mean that cash back on travel charges may not apply to airlines, gasoline or rental cars. Maybe that's why nearly half of rewards cardholders never or rarely bother to use their paybacks, according to a 2006 GMAC Mortgage and Harris Interactive survey. Review rewards credit cards or visit any of these websites:,,and . Realize, however, that the terms published on those websites are typically provided by the card issuer, so expect the small-print restrictions and loopholes to be omitted.
Sid Kirchheimer is the author of Scam-Proof Your Life (AARP Books/Sterling). Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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