To diversify or not to diversify - that is the question

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