Why points doesn’t equal to saved money

With everyone looking to save money, there are many people promoting about collecting points (either through a store or credit card). While this sounds great, collecting these points don’t actually equal to saving money, and there are a number of things you should look into before and while doing this.

Some points can’t be redeemed for actual money

While the points can add up, sometimes you can’t get money from it. If you are short on money then don’t rely on the points to get more money.

You may not be getting the best deal

Some stores give you points by buying certain things, and those things may not be the best deal you can find. They might be the most expensive option, or a brand you don’t like.

They want you to buy

Points are most often earned by buying something. And these companies want you to spend more to gain the points. And they want you to buy things you don’t actually need.

You buy what the company wants you to buy

To earn points (and maybe even extra points) the company has offers. The company can gear towards offers towards or away from certain companies if they want to. If you only buy things that offer them then the company is buying what they want you to buy.

The points can change cost or amount at any time

One day a point may be cost 25 cents, then the next, and without notice, each point can cost $2. While it isn’t fair if you want more points, in the terms and conditions most say they can change the cost without notice.

You can also lose many of your points without notice. The company can give any reason for that, or no reason at all.

Want points? Shop where we want you to

Some point cards limit you on how you can earn points. It could be limited to one store, one company, or certain products. They have a card to get you to spend more money where they want to you. Is it completely fair? No, but the company does give you some benefits for doing so.

Is it worth the trade? Maybe, you have to be the judge of that.

What does the company do with your information?

In the terms & conditions, and privacy policy you signed when getting that card, the company lays out some details of what they can do with your information. Most companies don’t lay out exactly who will get your information, they just say “third-parties”. Those third-parties could include advertising companies (you know how you see online or get physical cards with ads to similar products you just bought), data harvesting companies (companies that just collect information about people), or any company they want to give your information to.

What information does this include? This can include every piece of information attached to it, or it could only be small bits of information. The company doesn’t have to explain to you what information they give to others, most likely because nobody exactly knows.

Is there something you can do to stop your information from going to third-parties? You will want to read the terms & conditions that you agreed to when you signed up (and any updated terms) to see if there is anything you can do to stop it.

Overall, collect points when it makes sense for you, and only sign up when you fully feel comfortable doing so.

This is post number 95 as part of 100 Days To Offload.


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