The Rewards Loyalty Program
These cards allow you to accrue points toward perks and freebies while you shop, and don’t require a registration fee or credit-card commitment. It costs zero money to join and won’t affect your credit score. Just make sure the benefits suit your needs. (There is only so much room on your keychain.) For most brands, each dollar you spend translates to a point, and then various spending benchmarks (or quantities of points) are tied to giveaways or discount opportunities. You’re likely already a member of this kind of program; it’s your Walgreens card or the barcode you get scanned at the grocery store checkout line. But, you’re looking for clothes and gifts right now, we know.
What You Get
East Coast-based luxury discount retailer Century 21's C21 Status is one such program, the goal of which is to earn cash back by spending your way into higher "status" levels (2% for red card members; 3% for black), and earn access to express checkout lines and exclusive discounts.
What To Look Out For
Think of the non-credit card, non-initiation fee rewards program as a shopping gateway drug that entices you to spend more money or sign on for credit. It’s just like that Kim Kardashian app: You’ll constantly be tempted by the possibility of more rewards, more freebies, more status. And, to get those things, you need to earn a tremendous amount of points (i.e. spend, baby, spend) or give in and open a credit card — and then spend.
The Online Membership Program
Different from a free rewards card scenario, an online membership program ensures you’re a devoted customer through a number of addictive benefits, from free shipping on your purchases to innovative extras that might not have anything to do with shopping (music streaming, for example) — and you never have to leave the comfort of your own couch. The catch: There's often an annual subscription fee, although some services offer an initiation discount.
What You Get
Free shipping goes a long way, especially if you depend on online shopping for a good chunk of your household needs. (And yes, that monthly supply of Korean face masks totally counts as a necessity.) Free shipping could end up paying for itself — especially around the holidays when you’re ordering everything from gifts to place-setting accoutrements. Plus, access to movie, TV, and music streaming (and downloads) goes beyond a fun or convenient perk — it could be reason enough to cancel cable, and save thousands.
What To Look Out For
“If you purchase from a site often, the savings and rebates can absolutely add up over time,” confirms LexION Capital Management CEO and founding partner and all around money guru Elle Kaplan. “The only real danger with a program like this is becoming over-reliant on one service over all others. As a shopper, you need to give all purchases their due diligence. A retailer's hope in offering a service like this is making you reliant, to the exclusion of all other stores. As long as you stay a smart and nimble shopper, then indulge away and get the savings you deserve.”
If you sign on for the Angel card, you earn a point for every dollar spent (double points for bras) and score $10 for every 250 points accrued. Cardholders also enjoy early access to sales and free shipping on orders over $100. J.Crew not only offers a $25 rewards card for every $500 spent, but invitations to members-only events, early access to select items, and free alterations.
What To Look Out For
Well, the money people have plenty to say about this subject. First off, the annual percentage rates (APRs) on store cards are much higher than regular credit cards. “Those APRs can be deadly,” Kaplan cautions. “They regularly top 20% or higher.” (The APRs on regular credit cards range from 13% to 15%.) So, you definitely want to pay off your monthly balance. “If you're only shopping [at a store] once or twice a year and have a hard time managing your debt, forget it,” says Torabi (while probably also slowly shaking her head).