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Debunking Common Rewards Card Myths
Explore surprising truths about credit card rewards — from the real cost of 'free' perks to the truth about annual fees. Get informed before you apply.
Myth: Rewards Are Always Free Money
Many believe that rewards are just a perk without any cost. The reality is that these rewards often come with strings attached, such as annual fees or higher interest rates. For example, the HNB Visa Platinum offers substantial perks like lounge access and travel insurance, but starts charging an annual fee from the second year. Consider cards with no annual fees if you want truly free perks.
Myth: All Points Programs Are Equal
It's a common misconception that all points programs offer the same value. The reality is that redemption rates can vary significantly. The NDB Visa Platinum card, for instance, allows point redemption at over 180 lifestyle partners, providing flexibility that many cards lack. Always check the redemption options before you apply.
NDB Visa Platinum
The NDB Visa Platinum card shines for frequent travelers with LoungeKey access and extensive redemption options, ideal for maximizing points.
Myth: Higher Annual Fees Mean Better Rewards
While higher annual fees can indicate premium benefits, it's not a guarantee of better overall value. A card like the Commercial Bank Visa Platinum delivers comprehensive travel insurance and lounge access, similar to pricier cards, but may not provide sufficient value to justify its fee if you don't travel often. Consider your spending habits before choosing a high-fee card.
What Actually Matters in Rewards Cards
When selecting a rewards card, focus on the actual value of the rewards in relation to your spending habits, rather than the size of the perks advertised. Speaking of maximizing value, our detailed guide on Top Rewards Cards for Freelancers: Maximize Every Dollar offers further insights to help you make an informed choice.
