reward cards

Insider's tip: how rewards credit cards end up costing you more

Posted 1 year ago by Will Chen

Filed Under: Credit Cards

credit card warning saying \

Steve from Brooklyn used to work for a credit card issuer and he sent Wise Bread a great tip about the hidden dangers of reward cards:

I used to work for a large credit card issuer. One thing we found is that when our users upgraded from a standard bank-issued card (e.g. no rewards or points) to a rewards card (e.g. miles, hotel points, etc.), these same users also started charging a lot more to "non-essential" items e.g. Starbuck's, bookstore, dining out, entertainment, etc.

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