Rewards points are important to many individuals.

Rewards points are important to many individuals.

Saving money now – in the midst of the holiday spending season – can help an individual be in a better financial position later on, as they may not use too much money. Keeping a manageable budget during these times where spending is expected can make the rest of the year less stressful.

Keeping funds in the wallet can be quite beneficial, and rewards are one way to take advantage of this. According to a report from Capital One, more than half of individuals polled would find using rewards easier if the process was simplified. This is markedly higher than the 30 percent who noted this last year.

“We’re seeing that more and more people want rewards that are easy-to-use and give them meaningful value,” said Amy Lenander, vice president of rewards programs at Capital One. “Especially during the busy holiday season, shoppers have more important things to do than navigate complicated rewards cards with rotating bonus categories and spend thresholds or caps. We offer cards that make it easy for our customers to earn and use great rewards so that they can focus on what matters most to them.”

When it comes to taking advantage of the awards, preferences vary for individuals. The report explained that nearly half would like to get cash for their rewards, while 44 percent said they value points. Another 30 percent felt that miles were the best option.

Gift card expenses may be too high
Many Americans may be using credit cards to purchase their items and gain rewards points, but they may be spending too much money, which could have an adverse effect on their financial strategy. One item that they may use more money on than they initially thought is the gift card.

Every general-purpose gift card examined by a report showed that they have purchase fees. However, this occurred in just one-ninth of all cards that were brand specific.

“While most Americans prefer to receive general-purpose gift cards because they can be used almost anywhere, they should be aware of the fees these cards charge both purchasers and recipients,” said Janna Herron, credit card analyst at

Gift cards remain popular options around the holidays, as the report noted that close to 66 percent of Americans gifted one of these items. Close to 75 percent explained they received one of these items.

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