Many people sign up for different types of reward credit cards in the hopes of getting rewarded. Yet sometimes, getting rewarded may not always be so easy. In order to enjoy the benefits a rewards card has to offer, the cardholder must know how to do his/her part. Consider the following tips:
Opt for a cash back credit card. A cash back credit card is a great option for almost anyone because the reward program is much simpler compared to other reward programs. Typically, the best cash back credit card give 1 point for every dollar spent but you can also find other cards that offer up to 5% cash back on qualifying purchases. Cash back rewards are sent either in cash, check, or as credit to the cardholder’s account. If you are not a frequent traveller and if you do not own a car, a cash back reward credit card is a good choice.
Pay your monthly balance in full. In order to get truly rewarded, it’s important to pay your full balance each month to avoid paying the interest rate charges. Since most reward credit cards carry higher rates than regular cards, you can save a great deal by avoiding the extra fees. To make repayment easier, see to it that you only charge what you can afford to pay each month.
Understand the terms and conditions. Take the time to read the fine print to understand how you can use opportunities to get rewarded. Aside from your privileges as a cardholder, it’s also important to understand the restrictions imposed by your issuer. For instance, what kinds of purchases qualify you to earn reward points? Is your credit card affiliated with certain shops and establishments?
Plan your credit card use. What kinds of purchases do you plan to your charge to your reward credit card? Do you need to buy a certain gadget or appliance? It’s a good idea to use your credit cards with rewards for large purchases so you can rack up points more quickly. However, before you do, see to it that you have saved sufficient cash to pay for at least half of the purchase you charged to your card.
Use your reward credit card for recurring payments. Another way to collect more points without necessarily buying anything is to use your credit card to pay for utility bills such as electricity, gas, internet, cable, and other services you are subscribed to. To make this strategy work, immediately set aside utility bill payments from your salary and use your cash to pay off your credit card charges right away.
Take advantage of the features and services. Reward cardholders are entitled to special privileges which regular cardholders do not enjoy. For instance, you might be entitled to free travel insurance or car rental insurance so there’s no need for you to purchase separate insurance policy when you travel. Are you aware of the features and services of the best rewards credit card offers? If not, it’s time to review your credit card Agreement and see what you’ve been missing.