Credit card rewards programs are hugely popular with consumers. They allow you to benefit from a wide range of rewards simply for using your credit card.
Here are our top five tips for getting more from your credit card rewards program.
1.1 Use your card regularly.
The vast majority of credit card rewards programs award points based on the amount that you spend using your card. Most schemes award between one and two credit card reward points for every dollar that you spend on your card.
The more you use your card, the more rewards points you will accumulate. If you want to amass as many points as you can, the secret is to use your credit card as often as possible. Use it for large items but also for day-to-day purchases such as fuel and groceries.
1.2 Use ‘bonus partners’.
Most credit card providers have a range of retail partners with whom they offer bonus reward points. By using your credit card to spend with these bonus partners, you will also benefit from additional points in addition to the reward points you earn through your card provider.
Sometimes you can earn up to an additional four points per dollar spent by using your card with ‘bonus partners.’
1.3 Pay off your balance regularly.
One of the biggest mistakes that credit card rewards customers make is to maintain a balance on their reward card.
If you maintain a balance on your card there is a good chance that you will be paying interest at anything between 15% and 20%. You could therefore be paying hundreds of dollars every year in interest charges.
While the value of your rewards may be good, it is probable that you will be paying far more in credit card interest than the value of the rewards you are earning. So, where possible, you should pay off your rewards card balance every month. If that is not possible, consider transferring your balance from your rewards card to a ‘balance transfer’ card before using your rewards card in future.
1.4 upgrading your card.
Most card providers offer a range of cards affiliated to their credit card rewards schemes. These typically include a standard card, a gold card and a platinum card.
While you may find that you pay a higher annual fee for gold or platinum card, they will often offer enhanced benefits. For example, most gold and platinum cards will award more points per dollar spent than a standard card (it is not unusual for platinum cards to award two points per dollar spent). You could double the points you earn just by upgrading your card.
1.5 Use ‘points plus pay.’
If you haven’t collected enough points for your chosen reward, most providers will allow you to buy the item with a combination of reward points and cash. You can therefore benefit from your chosen reward by using a mixture of your points and paying the balance using your card.
Credit Card Rewards- It’s various purposes and advantages.
Sometimes the applicants of credit cards considers about the credit card rewards before signing up for a new credit card. This is the reason behind that the average Americans generally posses about four credit cards. Credit card rewards are great but the client needs to manage their expenses carefully, else there is every possibility to end up with dues.
The credit card rewards may vary from one company to other providing credit cards to their clients. Immediate gifts are often rewarded to the new clients for opening their new account. Some companies’ even offers gift checks for the services of spa, discounts at clothing shop and shoe stores. Some of the companies of credit cards also benefit the clients with cash back rewards. They provide their clients with rebates on a particular amount of purchase they make. For example, one may receive $10 cash back on spending more than $1,000 from their credit cards. Flyer miles are also granted by airlines companies to their clients who usually travel many times on their airline in a year. Ticket purchased through credit cards, can also benefit one in some ways.
The student credit cards are also available which are specially made for the college going students. These student credit cards have evolved very much helpful for them to have their daily needs. These credit cards are now easily available. The expenses made through this credit card should be in a limit as there is every possibility to get into debt.
American Express credit cards are the ones on which one can get huge cash back. One having the American Express credit cards also gets the privilege to open an own business team. These credit cards proves beneficiary in some ways for most of the people.
How to Use Credit Card Rewards Wisely?
Every card that provides rewards will have somewhat different programs than the remaining ones. Some of them will provide a cash-back reward which is necessarily providing the cardholder a definite percentage of their spending amount. This is done yearly or even may be done on a monthly basis. Such cards are great for those people who use their cards often but do not have sufficient time for dealing with the points which other cards may provide. Some of the reward programs will be provided in the form of sky miles. They are ideal for those cardholders who travel quite often. Some of the cards will let the cardholder to select from a variety of prizes.
The smart way to make rewards is by drawing advantage of them. Financial institutions are awe-struck at the sum of cardholders who do not redeem their rewards. They use their cards quite often and gather prizes. Nevertheless, they never take the time for getting the prizes. The best thing about credit card reward is that unless and until you have a cash-back program, you cannot contact the company for getting the prizes. Lots of the cardholders forget about their programs or simply do not have sufficient time for dealing with them.
If you have constant vigil on a prize, then you can use rewards programs by usage of your card. Use your card instead of cash and pay off the balance before any interest gets collected. This way you can come closer to your prize without being out of any additional cash.
Credit card rewards are a great way to get excited about usage of your credit card. Those individuals who generally carry cards filled to their maximum and who only make payment of minimum amount every month may not be as thrilled about the credit card rewards. Unless and until you are capable of using the card, you will not be able to draw benefit.
Hence, this was all about using your credit card rewards smartly. Read the article thoroughly to know all about.