Rewards programs are something that I take advantage of whenever possible. They are an incentive for me to continue using a company’s product. You will find reward programs with various credit card companies, restaurants, and clothing stores, to name a few. It is a great marketing tool to keep you coming back for more. Essentially, it is like training a dog. If you want the dog to sit, you must give the dog a treat if it obeys a command. No, I am not likening humans to dogs, but if you think about it, we enjoy treats too and if we buy, just as the dog sits, we get a treat.
I am especially drawn in by the awards that I receive via email or mail, that award me $15 off if I redeem $15 or more in the store or online. From the comfort of my home, I go to their website, shop a while and secure the deal. Sometimes you can save more by going to the store and buying there to avoid shipping and handling.
There are also “cash back” awards where you earn pennies on the dollar each time you use your credit card. Again, this is a nice treat after logging in to pay a credit card bill and see that you have earned $5.86 in reward money that you can use towards your payment. Not to dampen the spirit of rewards, but if all you do is charge and pay the minimum, they are happy to give you $5.86 as they take $25.00 in interest from you each month. Make sure you do your math when choosing credit cards and the interest rates associated with them.