How much do you love credit card rewards?
For many people the term ‘credit card’ has become quite scary as we have been convinced that all debt is bad. For a group of people though – known as churners – credit cards are actually a bit of a money spinner as they maximize the rewards available on some credit cards to their advantage, paying off the balance in full at the end of every month to avoid the interest but enjoying all of the not so hard earned rewards. Some people even spend on the cards, take the rewards on offer and then cancel the cards before you have to pay any of the fees on those cards.
The Difference between the US and the UK
As many of you will know, I’m actually based in the UK and over the past couple of years that I’ve been blogging I’ve noticed a huge difference in the way we Brits view and use credit card rewards in comparison to the way you use them here in the US. In the US – correct me if I’m wrong – you absolutely love your reward cards and it seems as though the rewards on offer would play a huge part in the card you would choose to go for. Here in the UK though I don’t think that the majority of people have really been using credit cards to the full in this way and I think that we look more at the length of any interest free periods more than we do at the rewards available.
Are the offers as good?
In the past I’ve often had a joke with my wife about certain things that we do in life that make us feel a certain way. For example ‘Do I drink too much coffee because I’m tired, or am I tired because I drink too much coffee?’ When I was a teenager the same thing cropped up with my parents about some of the music I used to listen to, ‘Do I listen to depressing music because I’m depressed or am I depressed because I listen to depressing music’? – You’ll be pleased to hear that this was just when I was a teenager though you can probably tell that I still think way too much about stuff.
I often wonder whether these scenarios apply to the way us Brits view credit card rewards. Do we not get as excited about rewards cards because the offers aren’t as good or are the offers not as good because we don’t get as excited about them?
To help my US readers understand just how vast the gap is between the cards on offer in the UK and those on offer in the US I just did a quick check on UK comparison site TotallyMoney to see how many rewards credit cards were available for comparison, there were 11 cards available. When I did a similar check on a Popular US comparison site though I found a staggering 70+ rewards cards on offer and some of the deals seemed great and well worth churning.
So how much do you love credit card rewards?
So am I right? Do you guys in the US love your rewards cards as much as I think and if you do, what is your card of choice? If you are one of our UK readers, do you get excited by rewards cards and do you churn them?