Professor Discusses Rewards Credit Cards

WalletHub featured School of Management Professor Deborah Y. Cohn, Ph.D., in an article detailing the best rewards credit cards. For consumers who manage their spending well, credit cards with rewards can offer hundreds of dollars in annual savings. While these cards appear enticing, with their generous rewards and high sign-up bonuses, Cohn notes that applying for new lines of credit too frequently can be detrimental to credit scores. “Apply only when your financial needs or habits change,” she warns. “Timing and strategy matter.”

Cohn also noted that consumers who pay in cash may inadvertently subsidize credit card rewards programs when no credit surcharge is added to a transaction. “Where no surcharge exists, cash payers may unknowingly subsidize rewards programs, and those with premium cards benefit most,” she says.