Assistant Professor of Marketing Chris Nelson stimulates consumer understanding of wholesale club credit cards by answering questions in an interview with WalletHub.
Chris Nelson, assistant professor of marketing in the Martha and Spencer Love School of Business, promotes consumer understanding of the advantages and disadvantages of wholesale club credit cards, like the Costco Anywhere Visa Card by Citi, in an “Ask the Expert” series with WalletHub.
Nelson discusses when it could be beneficial to apply for a club’s co-branded card, how to compare the cost to the potential rewards, and how to evaluate different cards based on their rewards.
“The first decision the consumer would make is whether the cost savings that he/she receives from Costco over other grocery stores is enough to offset the Costco membership fee. The second decision is to weigh the potential benefits of the card against the costs,” Nelson says. “Frequently, credit cards are acquired for special bonus rewards, such as extra hotel or airline points. In general, there is an expectation to utilize those bonus rewards in a near timeframe which could lead to choosing a card with near term rewards rather than one with greater long-term benefits.”
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