Key to maximizing credit card rewards
We spend money every single day on many different types of products and services and the bank's newest offer is that of 'saving when spending if you use their services' that is if you pay for your expenditures with special credit cards. These credit cards are part of a wide offer. Maximizing credit card rewards is not only for economists, it can simply be achieved by anybody who informs himself on credit cards, carefully chooses a suited card and manages it correctly.
Before signing up with any credit card read the fine print. While many cards offer 0% interest rate for the first 6 months, it is important to find out what happens after this period, as the rates could increase dramatically.
You also should avoid those cards with an annual fee as well as those which require a high balance to actually earn any rewards. Additionally, find out how you redeem your rewards to ensure that the process is hassle-free with no additional costs attached, and be sure to select a rewards card that actually suits your lifestyle and will be of use to you and your family.
The bigger the balance, the bigger the reward. Many cash-back cards require users to carry a balance, and unfortunately, for the 48% of Americans who carry a balance on their credit cards can be a dangerous incentive to spend more than they can afford.
Maximizing credit cards means getting the best out of something or receiving the best reward for your spent money. This usually means choosing more than one type of card and sometimes more than just one issuer. Some types of credit cards offer rewords and money-back on purchases only if you buy a certain type of product with them. Like gas cards will only offer a bonus program for gas purchases and no reward on supermarket purchases. In order to maximize your credit card rewards you will also need a card that offers rewards on supermarket or store purchases.
Many credit cards offer a 0% intro APR for 6 months or a 0% interest rate for an entire year, keep reading and see what happens after that promotional period of time. You may also want to check the annual fee policy and only choose a credit card with no annual maintenance fee - there are many types available form all large issuers. Another thing to look out for is the "limit condition" as there are cards that only actually offer rewards after you have passed over a certain minimum limit of expenditures and other cards that stop offering rewards once you surpass the limit.
After you actually have the card and you start spending, make sure you spend wisely. If, for example, the card only offers rewards when shopping in a certain type of store, go there and buy what you need form that place. Before making any spending decision you need to think if you have enough credit to pay for the card line at the end of the month. You may win some cash-back bonus or a plane ticket, but this will be of no use if you will be in debt and unable to pay your credit card bills.
Maximizing credit card rewards can be achieved by anyone who thinks twice before getting the card and spending the money. It may sound complicated and difficult at first, but once you learn the trick it will become a habit and you will see that you can spend money from a credit card and win some back at the same time. Be careful with what the card offers and what the conditions are for you to be given your reward; choose separate cards for separate kinds of expenditures; spend money in the places where the issuer recommends - if you can manage with all these you are on the right track to getting the most out of your credit card reward program.
Other Tips to Maximize Rewards
- request a companion card :-
If you or your spouse has a rewards credit card, request a companion card from bank so that you can team up to earn more rewards.
- Pay for groceries with your rewards credit card :-
most people pay for groceries either by check, cash or with a bank debit card. If you examine your monthly grocery bills you will quickly notice that this is a great source of necessary spending that can be harnessed for increased rewards.
- Pay your household bills online with a rewards credit card :-
many companies have begun accepting credit cards for immediate bill payment or scheduled recurring payments. Some, however, may impose a "convenience" fee for credit card payments. It's best to continue paying those bills by check probably. But, if you look at all the checks you write per month there is a lot of opportunity for earning points back for paying your cable, internet service provider, dentist, doctor, etc.
- Put your monthly rent or mortgage payment on the credit card :-
several of the nation's largest apartment property management companies along with many mortgage companies have recently begun accepting credit cards for monthly payments. This can be a great source of large and recurring rewards earning, but make sure you stay disciplined and pay that outstanding balance off at the end of the month. Even one month of finance charges on such a large purchase could wipe out the value of the rewards earned.
- Charging your taxes and fees is a convenient way to give yourself some extra time to pay and maximize your credit card rewards. You may earn a point, mile, or money back for every dollar you pay, depending on your card's reward program.