Credit card promos offer consumers a fantastic opportunity to enjoy perks that can make everyday purchases more affordable or rewarding. Choosing to time your spending during these promos enables you to benefit from discounts, cashback, and rewards points. For instance, if you sign up now for a Landers Cashback Everywhere Credit Card, you can get up to PHP 200 off your annual Landers membership or renewal fee.
However, if you just swipe your credit card without careful planning, you might miss out on the full benefits. By understanding how these credit card promos work and what to avoid, you can take full advantage of their rewards while keeping your finances in check. Here are a few pitfalls you should be aware of when using credit card promos.
Ignoring the Promo Terms and Conditions
Many consumers jump at the chance to use credit card promos without fully understanding the terms and conditions. Unfortunately, these terms often include specific spending requirements to qualify for the promo, partner merchant limitations, or restrictions on how rewards can be redeemed. Not reading these details means there’s a good chance that you’ll miss out on the full benefits of the promo. Make it a habit, then, to always take a few minutes to read through the fine print before using any promo.
Overspending to Meet Promo Requirements
Some credit card promos encourage consumers to spend a certain amount to qualify for rewards or discounts. With the Landers Cashback Everywhere Credit Card, for example, you’ll be able to enjoy 5% cashback at Landers by exceeding PHP 50,000 in total credit card spend. It’s a generous reward for allocating your money wisely to premium goods and grocery items. However, make sure not to go beyond your planned spending just to meet the requirements. Doing so can put you in a financial bind and lead to unnecessary debt.
It’s best to only use promos when the required spending aligns with your usual purchases. This way, you’re not stretching your budget. Also, shopping at Landers and paying using the Landers Cashback Everywhere Credit Card gives you 3% cashback on Landers purchases with no minimum spend, meaning you can still enjoy the benefits of the card without overspending.
Accumulating Interest Due to Deferred Payments
Some credit cards also offer deferred payment promos, which are designed to let consumers make purchases without paying interest for a certain period. However, if you fail to pay off the full amount before the promo ends, interest will start to accumulate, and you could be hit with extra charges. Anticipate this by creating a plan to pay off the deferred balance before the interest kicks in. Being mindful of the promo’s end date and prioritizing paying it off is key to avoiding unexpected interest fees.
Falling for Short-Term Deals without Long-Term Planning
Credit card promotions provide fantastic short-term benefits, like discounts or cashback on everyday purchases, making them a great way to save money in the moment. When used wisely, these offers can complement your financial goals by maximizing the value of your spending. To make the most of these rewards, it’s important to incorporate them into your broader financial strategy, ensuring they enhance rather than overshadow your long-term financial well-being. Stay mindful of your overall financial plan and you can enjoy the perks of credit card promos without them negatively impacting your spending habits or long-term goals.
Forgetting to Redeem Promo Rewards
Some consumers participate in credit card promos but forget to redeem the rewards, whether it’s cashback, points, or discounts. The missed rewards mean you don’t fully benefit from the promo. Stay organized by tracking your earned rewards and their expiration dates.
For the Landers Cashback Everywhere Credit Card, for example, you can check the Maya app to see the cashback you’ve acquired. At the same time, redeeming your cashback vouchers for this credit card is also a breeze, as you can do this in any Landers store nationwide. To make absolutely sure that you can use your cashback, set reminders on your phone to redeem any rewards before they expire.
Accumulating Multiple Cards Just for Promos
Some consumers open multiple credit card accounts solely to take advantage of various promos. While this might seem like a good way to maximize rewards, it can quickly become quite overwhelming to manage multiple lines of credit. Juggling payment cards increases the risk of missing payments, leading to late fees and higher interest rates. Additionally, applying for too many cards can lower your credit score. It’s better to stick to a few credit cards that offer a wide range of promos and benefits that suit your lifestyle.
Paying Only the Minimum Amount
When consumers take advantage of promos, they may spend more than usual and end up paying only the minimum amount due. This practice leads to accumulating interest on the remaining balance, turning what would have been an opportunity to spend less into a burden of spending more. Steering clear of this mistake means paying off your balance in full each month, or at least more than the minimum amount. This helps you enjoy the promo benefits without falling into debt.
Relying on Promos for Unnecessary Purchases
Credit card promos can make certain items seem like a great deal, leading consumers to make purchases they wouldn’t normally consider. This can result in accumulating debt for items that weren’t necessary for you to buy or own in the first place. By evaluating whether you truly need the item or service before making a purchase, regardless of the promo, you can opt out of exceeding your planned spending. If it’s not essential or part of your budget, it’s better to skip the deal.
Neglecting Your Credit Card Statement
Sometimes, consumers get so caught up in the excitement of a promo that they fail to closely review their credit card statements. This can lead to missed charges, errors, or fees that add up over time. It’s good practice to always review your credit card statement each month. This lets you make sure all charges are correct, and that any promo-related benefits, like cashback or points, have been properly credited.
Being aware of potential traps, like overspending to meet promo requirements or forgetting to track deadlines, helps you stay in control of your spending. With this knowledge, you can truly enjoy the perks of credit card ownership without falling into the pitfalls that can undermine the benefits.
