Customizable credit card rewards are gaining traction, particularly among individuals whose spending habits don’t fit neatly into traditional reward categories like dining, travel, or shopping. Rather than managing several cards to optimize benefits across different spending areas.
The cardholders can now choose cards that allow them to tailor rewards to their unique lifestyles, which can lead to cost savings and easier management. Financial analysts based in Dubai emphasize that this method provides greater control over rewards.
It can result in substantial savings, especially for those whose expenses fluctuate. For example, if you find yourself spending more on travel this month but expect to dine out more next month, a customizable rewards card allows you to adjust your rewards accordingly.
However, this flexibility often comes with an extra fee or higher interest rates. “It’s important to evaluate whether the additional cost justifies the personalization,” said Essam Kabeelali, a credit advisor from Abu Dhabi.
He recommends that cardholders analyze their monthly spending to determine if the benefits of customization outweigh the extra fees. For frequent travelers, tailored rewards could translate to additional miles. Those who dine out often might see advantages in cashback on restaurant purchases.
Financial experts warn that the allure of customization should not distract from the necessity of keeping an eye on annual fees, interest rates, and any potential limits on redeemable rewards. Kabeelali further advises, “Always align your spending habits with the costs of customizable rewards to ensure it fits into your overall financial strategy.”
