Crazy for credit card rewards

(SWEEPS FEED)- Do you love earning perks like airline miles, points towards free hotel rooms and even cash back from your credit cards?

Experts say some of these offers are getting even more generous and the way people earn big rewards has changed.

For many, playing the “rewards game” can lead to some big payouts, but for others, is the pull to get those points just too much?

Louis DeNicola loves getting rewards for his spending and he isn’t loyal to just one card.

“I have about 15 to 17 different rewards credit cards right now.”

Reward credit cards earn him things like free flights or hotel stays, and experts say now, more people who play the “reward game” are like DeNicola.

“It used to be that earning rewards was all about staying loyal to one airline or one card. Now, it’s about applying for a card to get that signup bonus then spending enough to reach the minimum threshold of spending, and then a few months later finding another card and doing the same thing,” said Matt Shulz, senior industry analyst at Creditcards.com.

Minimum thresholds that can range from $250 to $4,000 in the first three months as a cardholder in order to qualify for rewards.

DeNicola says he only uses his cards for things he’d typically purchase, but “there’s definitely a pull when you have a rewards credit card to spend a little bit more.”

That pull is something psychologist April Benson says can be a concern.

“For some people, signing up for a reward credit card can serve as an enormously powerful trigger to start over-shopping.”

Benson adds reward cards can be very beneficial to those who use them in a healthy way. But for some, she says, earning rewards can be similar to an addiction.

“What you see when somebody signs up for a reward credit card and gets into really big trouble with it are the signs of addiction to anything else,” Benson said.

So what are the signs you may be prone to a problem?

“Someone who keeps looking for the, you know, the next offer, the next best thing. Somebody for whom this is a preoccupation and it has negative consequences in their life,” Benson said.

Shulz points out that although the upsides to reward cards can include cash back and travel, the key is to stay organized, and “you just have to make sure that you’re keeping an eye on things, that you’re not applying for too many cards too often ’cause it can hurt your score. And also that you’re not overspending to get those rewards cause that can really get you in trouble.”