The key to being truly rewarded by your cash back card is careful spending and correct management. If you plan to get a credit card with rewards, consider the following tips on you can make the most of your points:
Pay off your outstanding balances from your other credit cards. Before looking for a new card, consider your financial standing. Do you presently have outstanding balances from other credit cards? If yes, wouldn’t it be wiser to settle your debts first before opening a new account?
Reward credit cards usually have higher APR ranging from 15% to 20% and if you are already struggling with your credit card payments, this may not be the best time to get another card.
Get a zero interest rewards card. There are reward cards that offer an introductory zero interest rate which you can use to consolidate your credit card debt. Take advantage of the 0% APR introductory offer. However, you want to make sure that you can complete your payments within the zero interest period. Also, check if the regular APR will still be reasonable after the promo.
Don’t charge more than what you can afford to pay back. Be smart. If you have doubts as to whether you can pay off that purchase in full on your due date, do not charge it to your rewards credit card. Avoid the high interest rates by paying off your balance in full each month.
Check the rules on earning points. Are you clear about the rules on collecting points and redeeming rewards? What types of purchases are eligible for points? Some cards may only give points on selected purchases so you may have a difficult time earning points.
Understand the restrictions. A reward credit card may impose blackout dates, maximum reward limits and other restrictions. If you are not aware of them, you may end up forfeiting your hard-earned points because you failed to ask for redemption on time.
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Submit your payments on time. Aside from avoiding the penalty fees, you don’t want to get disqualified from redeeming your rewards because of late payments.
Stick within your credit limit. Most reward cards have expensive over-the-limit charges. Be careful about maximizing your credit line just because you want to collect more points in your account. Remember, if you have to pay penalty charges, it defeats your purpose for getting a reward credit card.
Avoid credit cards with high annual fees. Watch out for cards with unreasonable annual fees. If you do your research well, you should be able to find credit cards with great reward programs that carry no annual fees and with reasonable terms.
Ann Wilson is the head writer of Reward Credit Card Site. This resource provides consumers with valuable reviews and information on the best credit card reward programs. Its main objective is to help people to take advantage of credit card rewards and start earning reward points. Copyright © 2008
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