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Americans leave millions of free money on the table | Real Time Headlines

This is how bank financial credit card rewards

Millions of dollars per year Credit card rewards Unclaimed – Possibly covering travel, daily expenses and even cash back into your pocket money. If you don’t redeem these rewards, you’ll put your money on the table.

As someone who leverages credit card rewards, I’m about the recent Funding Investigation It shows that 25% of Americans did not deliver on their returns last year.

This represents a lot of money. For example, consumers who use universal credit cards in 2022 received more than $40 billion in rewards, according to the 2024 Consumer Financial Protection Bureau. Report. “The issuer confiscates, expires, revokes or otherwise takes away hundreds of millions of dollars in reward value every year,” the agency said.

So much from social media influencers to finance experts, with these benefits highlighted, the real problem is more than just awareness. This is performed.

Your money is more:

Here are more stories about how to manage, develop and protect your funds for years to come.

Understanding the rewards program is one thing, but implementation is actually important. Like any other aspect of financial planning, without strategy, these privileges may be unclaimed.

These are some key points that consumers know.

The value of credit card rewards is ignored

Many consumers sign up for credit cards without thoroughly looking at the reward structure and benefits. Financial institutions often bury privileges on exquisite prints, making them easy to ignore. Many people think that rewards are a “reward” rather than a tangible financial asset that can offset expenditures.

Unlocking Hidden Benefits

In addition to standard rewards, many credit cards often offer embedded privileges such as travel insurance, purchase protection, and exclusive event access. These benefits provide cardholders with security and savings beyond traditional points or cashbacks.

Knowing which card provides what benefits can help maximize the value of your credit card and prevent you from leaving your money on your desk.

My family’s real life success story

I want to share a personal experience to show how easily overlooked credit card allowances can really change.

A few years ago, my son received an iPad from his grandparents as a Hanukkah gift. A few days later, in his brother’s hockey game, he put down for a moment to celebrate the huge victory–and disappeared in an instant.

He was heartbroken, my in-laws were very upset, assuming that it was gone forever. I encourage them to check the benefits provided by the credit card they use to purchase.

After calling a financial institution, they found the credit card of the goods they purchased Purchase protectionThis can reimburse you for stolen or damaged items you have recently purchased.

So, after submitting some paperwork, the iPad’s expenses will be reimbursed. Within a few weeks, they got the money back so they could change items. This is a good reminder that many people are not aware of the various allowances.

Knowing what your credit card offers can turn unexpected losses into valuable lessons and mitigate financial impacts.

Consumers’ gains

d3sign | Moment | Getty Images

  • Credit cards’ privileges are not just about points and cash back – they offer hidden protections that can save thousands of consumers.
  • Ignorance is expensive. If you do not use your privileges, you effectively return the money to the financial institution; especially if you have credit for annual fees.
  • If a newly purchased item is lost or stolen, or an expensive item breaks after the warranty expires, you don’t think you have no money. If you pay with a credit card, please contact your financial institution to check possible coverage with embedded purchase protection and extended warranty.
  • If you have problems with your vacation (such as a delayed flight, lost luggage, or cancellation) and then you booked a trip on your credit card, call the issuer. You may be able to get reimbursement from embedded travel insurance, which will pay for your losses or unexpected expenses.
  • If you are worried about accumulating your balance, you can’t pay in full at the end of the month, consider making a weekly payment or paying off your large purchases right away. This approach allows you to take advantage of credit cards, protect and rewards while maintaining disciplines that many people find in using debit cards.

– Lawrence D. Splen, a certified financial planner and founder/wealth consultant at Mitlin Financial Inc.

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