How The Right Credit Card Rewards Program Will Add Value To Your Wallet In The Long Term

In the past year, many people have changed where and how they spend their money. Instead of booking flights and concert tickets, many order home training equipment and update their leisure closets.

And some have strategically adapted the way they make these purchases to take advantage of credit card rewards programs.

A new TD Bank survey found that about a quarter of credit card holders say they make more of their purchases on credit now than before the pandemic. the top reason is to earn rewards.

While looking for a credit card at the checkout is only a small change in behavior, finding the right card and using it wisely can have a huge impact on your personal finances and credit profiles in the long run.

Shift of daily expenses

While some started making more credit purchases during the pandemic, many people continue to rely on cash transactions. In the TD survey, about half of Americans said they use a debit or credit card or cash as the primary method of making daily purchases.

“While using cash can be effective in managing costs, these consumers are potentially missing out on the opportunity to earn a refund for these purchases,” said Paramita Pal, head of US Bankcard at TD Bank.

TD recently released the TD Double Up credit card, which has a cash reward program of up to 2%. Double Up credit card holders can earn a 1% cash back on purchases, with no alternating categories, and an extra 1% cash back when the rewards are redeemed at a suitable TD deposit account. The card has no annual charge, no limit, limits or expiration dates when redeeming rewards, as long as the credit card account is open and in good standing.1

With the right rewards program, a series of daily charges can add up to a significant payback. TD’s research found that the average cardholder spends about $ 800 on his credit card each month. For someone who earns a total 2% refund when they spend and redeem their TD account, this could be the equivalent of almost $ 200 each year in rewards.

Using credit card responsibly can also help people set a record for timely debt payments, which can have a positive effect on credit scores. In fact, 28% of TD survey respondents who said they spend more on credit cards now said they wanted to earn their credit – something that could be crucial to achieving other financial milestones such as buying a home or getting one. loan.

It is important that people who transfer credit card expenses should understand how they work and the basics of responsible credit card use, such as:

Reviewing rewards programs

As consumer spending shifted into different categories over the past year, some have begun to reassess whether the cards in their wallets offer the most value.

According to the TD survey, about one in five Americans applied for a new credit card during the pandemic. Of this group, almost 40% did so because they wanted a different rewards program as their spending habits changed.

“Our research findings reinforce that many people want to be able to spend as much as they want and earn rewards in a variety of markets,” says Pal. “And getting a refund allows people to use that extra money the way they want or need it, whether it’s supporting a hobby, having a nice meal, or covering basic expenses.

With many Americans booking fewer flights during the pandemic, some also considered whether collecting travel rewards was still useful. More than 60% of millennials with a reward card said they wanted to change their rewards plan, with a third saying that this change came from the need for extra money in the form of a refund.

TD’s new refund card also offers consumers the convenience of seamless redemption into a convenient TD deposit account.

Learn more about the terms and eligibility of your TD Double Up credit card.

This post was created by TD Bank with Insider Studios.

1Read the terms and conditions for important information about APRs, fees, eligible purchases, balance transfers and rewards program details. The terms of the TD Deposit Account govern the use and any restrictions that may prohibit the deposit or withdrawal of a redemption bonus.

The TD Double Up credit card is only available on the TD retail footprint.

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