We all love our rewards credit cards, right? Hefty welcome bonuses, cash back on everyday purchases, annual flight credits, free travel, and purchase protections. Who doesn’t like earning points, miles, or cash back on things you were already going to buy?
True, credit card perks have come a long way in offering cardholders the utmost value. And while many are designed to reward you for spending you were already going to do, some are merely dressed up as “perks,” when, in fact, they don’t offer much value at all. As you’re shopping for your next credit card, here are three common “perks” that are completely overrated.
1. Free subscriptions you’ll never use
You might think it’s cool that your credit card offers free subscriptions, like an annual membership to Uber One or Lyft Pink. And while these perks could save you money if you’re actually using those services, they’ll amount to nothing if you use them once or twice then never again.
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The truth is, many luxury credit cards with annual fees will advertise a slew of subscriptions in the hopes that you’ll see past the big fee and sign up. Even if you do use the service regularly — say, for example, Instacart+ — rarely will a card give you the membership indefinitely. Often, the subscription will expire after your card’s first anniversary. So, if you’re getting a card based on the value of these subscriptions, take a closer look at its rewards program and see if you can derive value from its points or miles alone.
2. Bonus points for purchases you’ll never make
Speaking of credit card points, another overrated perk is getting bonus points or cash back for purchases you’ll likely never make.
For example, many rewards credit cards will give you bonus points for buying a Peloton bike. Now, I have nothing against Peloton. Sure, they’re a little too expensive, but if that’s how you exercise, so be it. Now, if you, like me, aren’t dying to buy a new Peloton, earning bonus points is a perk you’ll never use.
Instead of bonus points on one-time luxury purchases, look for credit cards that earn rewards on items you’re already buying. For example, many gas and grocery credit cards will earn bonus cash back on food and gas, which could actually help you save money. Likewise, travel credit cards can help you earn miles or points for travel purchases you were already going to make.
3. Airport lounges
Not too long ago, airport lounge access was a real perk. Lounges were quiet, exclusive, and had hardly anyone in them.
Nowadays, when you walk into an airport lounge, it feels as if you walked into another airport. They’re crowded, loud, and sometimes so over their capacity, you just want to go back to that quiet corner in the food court where you could have some peace.
Of course, that’s not to say there aren’t airport lounges that live up to the name. Surely, you can still find a lounge that feels exclusive. Likewise, if a credit card gives you access to airport lounges for free, by all means — go. I wouldn’t leave a perk on the table because you can’t sip your mango juice in peace. But if you’re seeking this perk in a new card under the assumption that you’re about to step into the life of a C-suite, you might be disappointed to find yourself waiting a half-hour outside the lounge for entry.
Now, don’t get me wrong: for every overrated perk, there’s likely half a dozen great perks you’ll actually use. But it’s fine to be picky upfront about which perks you want your card to have. Ultimately, you want perks that will add value, not cool add-ons that you might use.
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