Every year, countless dollars in credit card rewards go unapplied—funds that could be used for travel, daily purchases, or simply returned to your wallet as cash. By not using these rewards, you’re essentially leaving money behind.
As someone who frequently taps into credit card rewards, I found it quite surprising to learn from a recent Bankrate survey that a quarter of Americans didn’t cash in on their rewards last year.
We’re talking big bucks here. In 2022, major issuers of general-purpose credit cards helped consumers earn more than $40 billion in rewards, according to a 2024 Consumer Financial Protection Bureau report. The agency noted that “issuers forfeit, expire, revoke, or otherwise take away hundreds of millions of dollars in earned rewards value each year.”
Considering the volume of advice from both social media influencers and financial experts highlighting these opportunities, the real challenge isn’t necessarily about awareness but more about taking action.
Simply knowing about reward programs isn’t enough; it’s putting them to work that really counts. Just like any other part of managing your finances, without a solid plan, these benefits might slip away unnoticed.
Many consumers sign up for credit cards without diving into the details of the rewards and benefits they provide. Financial institutions often tuck these perks into the fine print, which makes them easy to miss. People often regard rewards as just an added bonus when they could actually be viewed as significant financial assets that help offset costs.
Beyond the typical rewards, numerous credit cards provide additional perks, such as travel insurance, purchase protection, and exclusive event access. These features can add layers of security and savings beyond the usual points or cashback. Understanding which card offers which benefits can help you maximize value and prevent leaving money unclaimed.
To share a personal anecdote illustrating how easily overlooked benefits can make a real impact: A few years back, my son received an iPad from his grandparents for Hanukkah. Unfortunately, it disappeared just as quickly at his brother’s hockey game after he set it down for a moment to join in the celebration of a big win.
Naturally, my son was devastated, and his grandparents were understandably frustrated, having thought the item was lost permanently. However, I suggested they look into the credit card’s benefits used to buy it.
After contacting the bank, they discovered that their credit card included purchase protection, which could reimburse the cost of the stolen item. After submitting a bit of paperwork, they got their money back within weeks, allowing them to replace the iPad and transforming an unexpected loss into a valuable lesson.
This experience serves as a reminder of how many people remain unaware of the various perks that come with their cards. Knowing what your credit card offers can transform setbacks into manageable challenges.
Credit card perks stretch beyond the usual points and cashback—they offer latent protections that could save consumers significant amounts of money. Ignorance can be expensive. Overlook these perks, and you’re simply handing money back to the financial institutions, notably if you’ve paid a yearly fee for the card.
When items you’ve purchased are lost, stolen, or break post-warranty, don’t assume the money is gone—if you used a credit card, check with your bank for potential coverage via purchase protection or extended warranties.
If you face issues while on vacation, such as flight delays, lost luggage, or canceled reservations, and you booked using a credit card, reach out to the issuer. Embedded travel insurance might reimburse your losses or unexpected expenses.
For those concerned about carrying a balance they can’t clear monthly, think about making weekly payments or settling large purchases immediately. This helps you enjoy the credit card perks and protections while maintaining the spending discipline a debit card typically encourages.
— By Lawrence D. Sprung, Certified Financial Planner, and Founder of Mitlin Financial Inc.
