A question that has been asked by our readers and the
media quite often is whether or not it is wise idea to diversify your
loyalty program portfolio. The primary reason behind diversifying your
loyalty program portfolio is just like diversifying any financial
portfolio, to minimize risk. Too often we see loyalty programs make
changes to their earning or redeeming rates which amount to the program
being devalued. In an ideal world the answer to question is yes, you
should make the most of any and all programs that you can. But in the
real world this isn’t always the case or possible.
If you are a frequent traveller, a big time credit card
spender or happen to travel on your parents dime and use their credit
rating to obtain the best credit cards then yes you most definitely
should. You are in a place where diversification can benefit you and
help you avoid devaluations seen from your traditional airline and
hotel reward programs, and sometimes, though rare, from proprietary
credit card reward programs.
But what about the typical Canadian? You
know someone who has a family with two or three kids, mortgage
payments, car payments, kid’s activity obligations and so on with a
household income between $40,000 and $150,000? Can you diversify?
Should you diversify? The answer is still yes but with many more
limitations.
If you fall into this bracket like most of us do, then read on. Even
if you don’t fall into this bracket, read on as there are still some
tips you can probably make use of.
Continue on reading the whole article on the main Rewards Canada