7 Tips For Using Rewards Credit Cards

For years, rewards credit cards have been popular for their cash back, frequent flier miles, hotel points, and the like. But how do you make the most of your rewards credit card? Follow these seven tips to get the most out of your purchase!

1) Pay off your balance every month. You may be getting points on your purchases but interest rates will accumulate on any unpaid balance. 

2) Use a credit card that has a low APR or 0% intro APR period to take advantage of a potential discount or offers. Balance transfer offers are great too to consolidate your debt.

3) Focus on rewards for the kinds of purchases you make. A rewards card that gives a lot of points for gas, for example, is not very helpful if you don't drive much and never pay for gas with plastic.

4) Choose a card that has a good amount of rewards but also doesn't have an annual fee. You want to be able to use it without having to pay a yearly fee and still accrue enough points or miles so that you can use them later when they are redeemed.

5) For example, in order to get $1 cash back or 100 miles, you may have to spend $10,000 over the course of one year. This can mean earning $1,000 in cash back or miles.

5) Take advantage of bonuses and promotions from time to time. For example, you may be able to get a large amount of points if you take advantage of a particular promotion.

6) Keep your credit card information secure. Always make sure to either use your rewards credit card online with a secure connection or check your statement online often so that you know instantly if your information has been compromised.

7) If you carry a balance on the card, it's best not to use it for emergency expenses and pay off the whole balance every month so that interest doesn't pile up on top of interest and make your debt larger than it needs to be.

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Need a Credit Card? Here are 10 Things You Should Know Before Choosing One: http://thefinanceengr.blogspot.com/2012/05/choosing-credit-card-before-you-fill-application.html Reply Delete

1) You should choose a card that has low interest rates if you can afford it and can pay the balance in full each month. That way, you aren't wasting money on interest charges.

2) You should use a card that has signup bonuses. They can help make your money go further.

3) You should select a card that gives you frequent flyer miles or rewards points that you want to use. If you don't want to fly first class or stay at the most luxurious hotels, then it doesn't make sense to select those cards because the rewards won't be useful to you.

4) Use a card that has a low annual fee. You don't have to pay the annual fee each year but it makes sense to choose one that has an annual fee ($75) in order to use your rewards points instead of paying that fee.

5) Choose a card that gives you cash back on all purchases, not just certain kinds of purchases. For example, some credit cards give you 5% back on groceries. Some give 5% back on gas, restaurant or movie purchases and others give 10%. That way, you can use it for everything and still get value out of your rewards points or miles because they are essentially free money when redeemed.

6) Consider whether the card pays you back at a high rate of interest or at a low rate of interest. If you pay any amount of money off each month, you can get the card with the lower interest rate and use it to get cash back on your purchases instead of paying interest on that money.

7) Choose a card with good customer service. Even if you have a good rewards card, they may have lost your paperwork or made an error when issuing your card (accidentally put your buddy's name on it, for example). There may be tons of calls and mailings to handle any such problems. Also, many people complain about their credit cards and feel as though their issues aren't handled well. So, it makes sense to choose one that has good customer service before you are stuck in a situation where you can't get your problem fixed. Reply Delete

The reward or bonus will not be credited to my account when I get the big rewards. What gives? Reply Delete

I know this is an old post and I'm sorry for the inconvenience but this still has relevance for me - does anyone know how long it takes for an 80% bonus to come off? I just got mine back yesterday and would really like to find out how long it will last.

Conclusion:

You can use a credit card to make all sorts of purchases, from groceries and gas to plane tickets and hotel rooms. But having a credit card is more than just being able to make convenient purchases. Using a rewards credit card can earn you travel discounts, cash back, discounts on travel expenses and more. When you use the right rewards cards and make sure to pay them off so that interest charges don't pile up unnecessarily, rewards credit cards can be tremendously valuable! Reply Delete

Hey Sonia! I have some points that I didn't cash out because I was saving it for something big... but now I'm not sure if it's even worth it anymore to hold on to them.