Maximizing Credit Card Reward Points

We only focus on the negatives when it comes to credit cards: The ease with which we get into debt and the length of time it takes us to pay it all off. Who knew that there was such a thing as credit card rewards? Those who are savvy with their money is the answer. Credit card rewards are a fantastic method of adding extra income as long as they are used in the correct manner. This means paying off your cards every month and no extra purchases for example.

If you use multiple credit cards, you may earn an annual reward of 3%. If this does not sound like much, even charging $ 500 a month to your credit card would lead to an annual reward of $ 180. It's estimated that the average American household earns over $ 600 a year in reward bonuses and does not redeem approximately 33% of this figure. If you are reading this, you probably have a host of points on your card and do not even realize it. If so, you need to learn how to maximize your credit card rewards.

Choose One To Fit Your Lifestyle

For example, if you travel a lot during the course of a year, availing of a hotel or airline credit card is a smart option. If the majority of this travel takes place in your car, why not look for a gas rewards card? However, the best option is unduly a cashback card because such programs are simple and flexible. While the value of an airline mile may be confusing, there are no such problems with dollars. It is also possible to redeem your rewards in the form of gift cards, charity fees or statement credit.

Rules & Regulations

Beware the terms and conditions. For instance, you may be required to spend a certain amount of cash before the reward is available. Likewise, there may be a limit to how much you can claim. Finally, there is a chance that reward programs have expiration dates and the terms and conditions are subject to change at any time. If you want to hit the minimum spending threshold, you'll need to plan your spending during the course of the year.

Bonuses

On rare occasions, you may get the opportunity to increase the level of reward. Credit card issuers are known to improve certain seasonal offers. One example of this would be an increase in the power of summer gas purchases because it's the busiest time of year for driving. Your issuer may also have their own online shopping portal and you gain rewards for spending your money there.

Being Sensible

Never forget the fact that a rewards card is still a credit card underneath. This means you should not spend so much in a month that you can not clear the entire balance. Reward cards typically carry a higher rate of interest as well because issuers have to fund their 'generosity' somehow! Bear in mind that missing payments may also disqualify you from the rewards so consider this before embarking on a major shopping splurge. Finally, be sure to redeem your rewards frequently instead of allowing them to build up because you never know when the rules will change.

Reward cards can be a great way to get something back from a credit card issuer but be sure to check your end of year summary to ensure you are getting value for money. If you do not like what you're getting, sometimes it's time to switch issuers.

Source by Jason Kay

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