Some people have a completely negative notion on reward credit cards. Nevertheless, credit cards with the right reward program can actually be a great tool to save money if you know how to use it correctly. Consider these tips on how to maximize your credit cards with rewards.
Use your card for daily purchases. With the holiday celebrations just around the corner, you can use your reward credit card to pay for groceries, gifts and other holiday expenses. Just make sure that you have enough cash to pay off your balance on time.
Use your card for utility bills. Consider paying your utility bills such as electricity, cable, internet, and other monthly services with your credit card with rewards. This way, you can earn points each month even without making a single purchase.
Use your credit card for a large purchase. The bigger the amount of purchase you charge to your credit card, the more points you earn. Are you planning to buy a new gadget, appliance or furniture this holiday season? If yes, this can be the perfect time to use your best credit cards and rack up points.
However, it’s important to make sure that you will be able to pay off your balance on time to avoid interest rates and penalty fees. If you can’t pay off your full balance, pay off as much as you can instead of just paying the minimum due. The sooner you can complete your payment, the more you can save money on interest rate charges.
Stay within your monthly budget. Do not be tempted to spend more than your monthly budget just to get more points. It’s very important to plan your credit card spending and follow your budget plan. Chasing after rewards may quickly lead to debt build-up.
Don’t forget to register. Some of the best rewards credit card requires their holders to register online in order to qualify for special discounts, perks and privileges. Be sure to read all notices from your credit card issuer to make sure that you won’t miss a single opportunity to earn points.
Purchase from affiliates. Some merchants and establishments that are affiliated with reward credit cards offer exclusive discounts that you can take advantage of. You can even win bigger points from these purchases so be sure to look for affiliate shops.
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Take advantage of your purchase power. Paying with a reward credit card gives you additional protection from your purchases. For example, most stores have a 30-day Refund Policy but reward credit card issuers usually offer up to 90 days of purchase protection.
Monitor your account. Check your account often, especially after using your rewards credit cards for payment. It may take a few days before your reward points are credited to your account. You want to make sure that you earn all the points you deserve. More importantly, you should make sure that your account is not being used for unauthorized purchases. In case you discover unfamiliar charges, you should call your bank or issuer immediately to dispute.