What do you look for in a card - rewards or benefits?

[Anonymous]

Just curious what makes a card worthwhile to you. For example, Amex Platinum has some amazing benefits like lounge access, hotel elite status, and a $200 airline allowance that pretty much offset the AF for frequent travelers but it only earns 1 MR point per dollar spent, not exactly great IMO. On the other hand, BCP has some serious cash back potential with its 6% on groceries and 3% on gas and department stores.

Since I don't travel nearly as much as I use to and in the forseeable future, I tend to prefer rewards over benefits. I've been working on my credit portfolio over the past year or so and finally have it to where I am satisfied with not apping for any more cards anytime soon.

I use BCE, Chase Freedom, and Citi Forward for the bonus categories and my new Blue Sky for general spend (where I would otherwise only get 1% back) and for big purchases (where I want to use the Amex extended warranty).

The only other things I'd like are a Visa Signature (for the concierge service) which I'm hoping my Freedom will get upgraded to at some point and perhaps a 2% general cash back card like the Fidelity Amex.

[ComputerWizMaster]

It is all about rewards for me. I've become addicted to maxing them out so I can get the most back for my everyday spending.

I just got a Visa Signature though to see how I like the benefits of a higher tier card and we'll see how that changes once I get the card in the mail and can test the Visa Concierge.

[Anonymous]

I look for equal parts rewards, benefits, and customer service.  Which is why my primary is my Amex PR gold.  But if I really had to pick between rewards and benefits, I would go for rewards.

[spengbab]

Rewards mostly. It seems that for benefits, fees are assessed right? I like the idea of earning cashback on stuff I get everyday. Company gets a cut of the business and I get a nice small kickback

[CreditScholar]

For me, benefits is the most important. I don't care about sign-up bonuses, but I really value on-going benefits and excellent customer service. Rewards is a secondary concern, but still nice. I think this is why many people carry multiple cards. For me I use the CSP for the rewards, and hold on to my PP for the travel benefits.

I want rewards that are flexible. I'd rather use a card with a lower earning rate, but whose points can be redeemed without it being a major hassle. I can't stand having tons of points that are a pain to redeem because of blackout dates, restrictive policies, unhelpful or ignorant CSRs, etc.

I think as a general rule, the wealthier a person is the more they value benefits and the less they value rewards. For people who rely on points to pay for travel/spending that they couldn't afford otherwise, earning potential is a huge deal.

Once people hit a certain threshold though, the quality of your experience becomes more important. These other people are often willing to pay more (because they can) in order to avoid time-consuming hassles. To them the difference between earning 50,000 points vs. 70,000 points in a year isn't a deal-breaker, because they have the cash to fund the shortfall. What is a deal-breaker for them is spending obscene amounts of time with unhelpful CSRs, getting run around in circles, waiting in long lines or queues on the phone, spending hours looking for dates they can actually use their reward points, etc.

[Anonymous]

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@spengbab wrote:

Rewards mostly. It seems that for benefits, fees are assessed right? I like the idea of earning cashback on stuff I get everyday. Company gets a cut of the business and I get a nice small kickback

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There are actually a lot of benefits that don't require you to pay an AF. The extended warranty on all Amex products comes to mind where they will extend the manufacturer's warranty by a year up to $10000 purchase. The concierge service that comes with Visa Signature cards is also free assuming you have a no AF card. A lot of cards these days also come with complimentary car rental insurance, just decline the insurance they offer you at check in.

[Anonymous]

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@CreditScholar wrote:

For me, benefits is the most important. I don't care about sign-up bonuses, but I really value on-going benefits and excellent customer service. Rewards is a secondary concern, but still nice. I think this is why many people carry multiple cards. For me I use the CSP for the rewards, and hold on to my PP for the travel benefits.

I want rewards that are flexible. I'd rather use a card with a lower earning rate, but whose points can be redeemed without it being a major hassle. I can't stand having tons of points that are a pain to redeem because of blackout dates, restrictive policies, unhelpful or ignorant CSRs, etc.

I think as a general rule, the wealthier a person is the more they value benefits and the less they value rewards. For people who rely on points to pay for travel/spending that they couldn't afford otherwise, earning potential is a huge deal.

Once people hit a certain threshold though, the quality of your experience becomes more important. These other people are often willing to pay more (because they can) in order to avoid time-consuming hassles. To them the difference between earning 50,000 points vs. 70,000 points in a year isn't a deal-breaker, because they have the cash to fund the shortfall. What is a deal-breaker for them is spending obscene amounts of time with unhelpful CSRs, getting run around in circles, waiting in long lines or queues on the phone, spending hours looking for dates they can actually use their reward points, etc.

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+1

Well said!!! Time is money, and we all know money = happiness . But in all honestly, great post.

[Gollum]

I don't care about rewards or benefits.  I care about the interest rate.

[lithium78]

I look for cards with good rewards.  I want all my credit cards to pay me for using them.  My next most important factor is customer service.  I don't want to have problems when I call for help and I prefer to talk with someone from the USA, because it can be difficult to understand someone from another country due to their accent.  Lastly, I care about interest rate, which is more of a minor factor to me, since I tend to PIF.  Next year after I get my mortgage, I plan to get a CU card with a low interest rate, so I can keep it for emergencies when I might need to carry a balance.

[tinuviel]

I'm primarily interested in rewards. I especially like cash back rewards, but I'm keen to see how the Amex MR points work out for me when I go to use them towards booking a trip later this year. After that, customer service would probably be the next most important thing to me.