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Getting the Most from Your Credit Card Rewards Program
I am not a fan of credit cards. They are too easy to get, too easy to use and too difficult to pay back unless you are very, very strict with their use. However, if you’re willing to put in a bit of work, you can benefit greatly from a credit card with rewards; there are more ways to capitalize on those rewards than ever before.
There can be some confusion about which card is best for your situation. The rules can be complicated. There are point caps, minimum spending limits, blackout dates, and other restrictions that make it challenging to receive your rewards.
Consider these tips on how to get the most from your credit card rewards:
1. Get a card with useful rewards. A card that offers airfare rewards won’t do you much good if you rarely travel by air. Find a reward card that fits your lifestyle and needs.
2. Stay abreast of term changes. Credit card companies often change their policies. If you get a notice in the mail, read it. You might find that it’s time to start looking for a new card.
3. When you’ve settled on a rewards card, use it as much as you can. The more you spend, the greater the rewards. However, avoid spending more than necessary. It’s financially irresponsible to buy items you don't really need or want just to earn rewards.
4. Some cards permit the user to turn in points toward gift cards. This is because retailers are willing to subsidize the card to get you into their stores. Ensure the selected retailers are places where you shop.
5. Pay your bill in full every month. Avoid making late payments or carrying a balance because interest and late fees will quickly offset any rewards you earn.
Credit card companies are willing to offer rewards because they know that many of their customers will carry a balance or pay late, which makes it well worth their while.
6. Watch the expiry date on your points. Most cards won’t let you keep rewards points indefinitely. Be aware of when your points expire, so you can take full advantage of them.
7. Find out if there’s a spending requirement. Some cards require you to spend a minimum amount each month or year if you want to keep your reward points active.
Rewards cards are a great idea. The issue isn’t whether to have one, but rather, which one to get! Take the time to sit down and look at what benefits each card offers.
Then be realistic about your financial situation and avoid spending extra just to earn a few more rewards points.
There can be some confusion about which card is best for your situation. The rules can be complicated. There are point caps, minimum spending limits, blackout dates, and other restrictions that make it challenging to receive your rewards.
Consider these tips on how to get the most from your credit card rewards:
1. Get a card with useful rewards. A card that offers airfare rewards won’t do you much good if you rarely travel by air. Find a reward card that fits your lifestyle and needs.
2. Stay abreast of term changes. Credit card companies often change their policies. If you get a notice in the mail, read it. You might find that it’s time to start looking for a new card.
3. When you’ve settled on a rewards card, use it as much as you can. The more you spend, the greater the rewards. However, avoid spending more than necessary. It’s financially irresponsible to buy items you don't really need or want just to earn rewards.
4. Some cards permit the user to turn in points toward gift cards. This is because retailers are willing to subsidize the card to get you into their stores. Ensure the selected retailers are places where you shop.
5. Pay your bill in full every month. Avoid making late payments or carrying a balance because interest and late fees will quickly offset any rewards you earn.
Credit card companies are willing to offer rewards because they know that many of their customers will carry a balance or pay late, which makes it well worth their while.
6. Watch the expiry date on your points. Most cards won’t let you keep rewards points indefinitely. Be aware of when your points expire, so you can take full advantage of them.
7. Find out if there’s a spending requirement. Some cards require you to spend a minimum amount each month or year if you want to keep your reward points active.
Rewards cards are a great idea. The issue isn’t whether to have one, but rather, which one to get! Take the time to sit down and look at what benefits each card offers.
Then be realistic about your financial situation and avoid spending extra just to earn a few more rewards points.