Op-ed: Americans are leaving millions in free money on the table

Every year, millions of dollars in credit card rewards go unclaimed — money that could be covering travel, everyday expenses, or even cash back in your pocket. If you’re not redeeming those rewards, you’re leaving money on the table.

As someone who leverages credit card rewards, I was somewhat surprised by the recent Bankrate survey revealing that 25% of Americans didn’t redeem their rewards last year.

That represents big money. For example, in 2022, consumers using general-purpose credit cards from major issuers earned more than $40 billion in rewards, according to a 2024 Consumer Financial Protection Bureau report. “Issuers forfeit, expire, revoke, or otherwise take away hundreds of millions of dollars in earned rewards value each year,” the agency said.

With so much content from social media influencers to financial experts highlighting these benefits, the real issue isn’t just awareness; it’s execution. 

Knowing about the reward programs is one thing, but implementing is what actually matters.  Like any other aspect of financial planning, without a strategy, these perks may go unclaimed.

Here are some key points for consumers to know.

Many consumers sign up for credit cards without thoroughly reviewing the rewards structure and benefits. Financial institutions often bury perks in fine print, making them easy to overlook. Many people think of rewards as a “bonus” rather than a tangible financial asset that could offset expenses.

Beyond standard rewards, many credit cards often offer embedded perks such as travel insurance, purchase protection and exclusive event access. These benefits offer cardholders added security and savings beyond traditional points or cashback. 

Understanding which card offers which benefit can help maximize the value of your credit card and prevent you from leaving money on the table.

I want to share a personal experience to show how easily overlooked credit card perks can make a real difference.

Several years ago, my son received an iPad as a Hanukkah gift from his grandparents. A few days later, at his brother’s hockey game, he put it down for just a moment to celebrate a big win — and in an instant, it was gone. 

He was heartbroken, and my in-laws were frustrated, assuming it was gone for good. I encouraged them to check the benefits offered by the credit card they used to buy it.

After a call to the financial institution, they discovered the credit card they purchased the item with had purchase protection, which can reimburse you for recently purchased items that are stolen or damaged.

Thanks to that, the cost of the iPad would be reimbursed to them after they submitted some paperwork. Within weeks, they got their money back, allowing them to replace the item. It was a great reminder that so many people are unaware of various perks.

Knowing what your credit card offers can turn an unexpected loss into a valuable lesson and soften the financial impact.

• Credit card perks aren’t just about points and cashback — they offer hidden protections that can save consumers thousands.

• Ignorance is costly. If you’re not using your perks, you’re effectively giving money back to the financial institution; especially if you have a credit with a yearly fee. 

• If a newly purchased item is lost or stolen or if an expensive item breaks after the warranty expires don’t assume you are out the money. If you paid with a credit card, reach out to your financial institution to check for possible coverage via embedded purchase protection and extended warranties.

• If you run into an issue on vacation — such as a delayed flight, lost luggage, or canceled reservation — and you booked the trip on a credit card, call the issuer. You may be able to get reimbursement from embedded travel insurance that will cover your losses or unexpected expenses. 

• If you’re concerned about accumulating a balance you can’t pay in full at the end of the month, consider making weekly payments or paying off large purchases immediately. This approach allows you to leverage the benefits, protections and rewards of a credit card while maintaining the discipline many find in using a debit card.

— By Lawrence D. Sprung, a certified financial planner and founder/wealth advisor at Mitlin Financial Inc.