Most Rewards Credit Card Holders Sabotage Themselves

MoneyTips

Would you pay $17 to get $2 back? Few people would – but a new survey suggests that many Americans are effectively doing so because of the way they handle their rewards credit cards.

You may think, "Why have a rewards card if you don't load it up with purchases? You have to spend money to get rewards."

According to a new survey from CreditCards.com, too many Americans follow that line of logic – and make a huge mistake in the process. Over half of survey respondents (57%) have at least one type of rewards card, with cash-back the most popular at 43% of rewards cards – but only 41% of those respondents pay off their rewards cards in full each month.

The average annual percentage rate (APR) for credit cards is currently over 17%. Meanwhile, most cash-back rewards are in the 1-2% range, with some offering 4% to 5% on certain purchases. Interest charges on any balances will quickly overwhelm savings.

According to 2017 data from NerdWallet, the ave...

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