Finance Globe

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How to Get the Most From Your Credit Card Rewards

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 There are some rewards credit cards on the market right now. Most rewards credit cards are currently offering a great signup bonus if you meet a minimum spending requirement in the first few months of having your credit card. Earning credit card rewards gives you an extra benefit for spending you would have done anyway. Here are some tips for getting the most out of your credit card rewards.

Pick the right rewards credit card. With so many rewards credit cards to choose from, it can be tough picking the right credit card. Look around at a few different cards before you settle on the one you want for your wallet. Consider your current spending and interests when you’re looking at a credit card. For example, if you dine out a lot and you want versatility in redeeming your rewards, you might choose a cash back credit card that pays higher rewards on restaurant purchases.

Snag the signup bonus. If you signup for a new credit card that offers a signup bonus, you’d be remiss not to earn the bonus. On travel credit cards, the bonus is often enough for a free flight or free hotel stay. You may have to spend anywhere from $500 to $4,000 in the first three months of opening your credit card account. Depending on your credit limit, you may have to pay off your credit card balance even before the due date to free up available credit for more spending.

Don’t pay any interest on your credit card balance. The more you pay for your credit cards, the less your credit card rewards are effectively worth. Unless you have a 0% promotional rate on purchases, you should pay your credit card balance in full each month so you’re not charged finance charges on your balance.

Use your credit card for all your spending. The more you spend on your credit card, the more rewards you can earn. You can maximize the rewards you earn by switching from cash or debit for your purchases and instead using your rewards credit card for all your spending. Just make sure you don’t spend more than you normally would and continue to pay your full credit card balance each month to avoid interest and debt.

Weigh your redemption options. You may be able to redeem your rewards as a statement credit, cash back, for travel purchases, for gift cards, or a few other options. Pay attention to how much your rewards are worth based on your redemption choice. You may get more for your rewards when you redeem them for a gift card or you choose to use your credit card issuer’s online booking tool.

As you spend, keep up with the rewards you’re earning. If your credit card rewards have an expiration date, make sure you use your rewards before you lose them.

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Comments 2

Wanderer on Wednesday, 28 February 2018 19:02

This offering hits the key points on Rewards. My past cards were without rewards and as a small spender figured it did not matter. With what has been brought out in this posting I realized there was cash on the table for me. Using Rewards Cards now (even as a small spender) I have been collecting around $400 to $500 dollars a year (I am after the cash rewards not the travel as I don't travel anymore). Why not? For the traveler there are several good cards that allow for leveraging travel related services/partners that can lead to greatly reduced expenses in air travel and hotel stays to mention but a few. A reader only needs to decide what options work best.

This offering hits the key points on Rewards. My past cards were without rewards and as a small spender figured it did not matter. With what has been brought out in this posting I realized there was cash on the table for me. Using Rewards Cards now (even as a small spender) I have been collecting around $400 to $500 dollars a year (I am after the cash rewards not the travel as I don't travel anymore). Why not? For the traveler there are several good cards that allow for leveraging travel related services/partners that can lead to greatly reduced expenses in air travel and hotel stays to mention but a few. A reader only needs to decide what options work best.
Frank on Monday, 30 April 2018 16:45

My general theme on credit card rewards is stick with a few great credit cards and use those for your big and regular purchases.

My general theme on credit card rewards is stick with a few great credit cards and use those for your big and regular purchases.
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Tuesday, 20 August 2019

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