Cash back, travel miles, points for every purchase—credit card rewards sound like the ultimate freebie. And in many ways, they can be. But here’s the catch: not all rewards are created equal, and if you’re not careful, you could end up paying more than you earn.
At Mill Town Credit Union, we want you to get the most out of your money without falling into the fine-print trap. Here’s the truth behind credit card rewards—and how to actually benefit from them without getting burned.
1. Yes, Rewards Can Be Free—If You Play It Right
The best-case scenario? You use your card for purchases you were already planning to make, pay the balance off each month, and rack up rewards in the process. That’s free money, plain and simple.
Where people go wrong is treating the rewards like a reason to spend more than they should—or carrying a balance that comes with high interest.
2. High APRs Can Cancel Out Your Earnings
That 2% cash back doesn’t do much for you if you’re paying 18% in interest. If you tend to carry a balance, rewards may not actually save you money—they just mask the cost of borrowing.
That’s why we offer a smarter solution: our Mill Town Visa® Credit Card with a low 9.50% fixed rate and no annual fee. Same rate for purchases, cash advances, and balance transfers—no surprises.
3. Watch for Hidden Fees
Many big-name reward cards come with sneaky fees—annual fees, balance transfer fees, foreign transaction fees. Suddenly that “free” vacation starts costing more than it’s worth.
With Mill Town, you get no annual fee, no balance transfer fees, and no gimmicks. Just simple, honest benefits designed with you in mind.
4. Are You Earning Rewards That Actually Matter?
A luxury airline upgrade might sound nice, but if you’re not a frequent traveler, what’s the point? The best rewards are the ones that match your lifestyle.
Look for cards that offer cash back, gas rewards, or everyday purchase perks—and let those points work for you. Not sure what makes sense? We’ll help you compare options that fit your habits and your budget.
5. Don’t Let Points Expire or Go Unused
Nearly 30% of credit card rewards go unused. Don’t leave money on the table—set reminders to redeem your points regularly. Some cards have expiration policies or blackout dates that make using your rewards harder than it should be.
The Bottom Line? Rewards Can Be a Win—If You’re Smart About It. Credit card rewards aren’t a scam—but they’re also not truly “free” unless you stay in control. Use them wisely, pay off your balance, and avoid cards with sky-high interest rates or unnecessary fees.
Need help finding a card that actually works for you? Start with ours: Mill Town Visa®. Fixed low rate. Real savings. Zero surprises. Click here to learn more!
Mill Town Credit Union—Rooted in trust, built for your financial freedom.