Make the Most of Your Credit Card Rewards in 2012

You can make the most out of your credit card rewards by following the right strategy. Are you ready to start the year right? On this post, let’s take a look at the specific ways as to how you can rack up more points and get rewarded sooner.

Look for a credit card that fits your lifestyle. It’s very important to start with the right reward credit card on your hands. If you’re a frequent traveler, get a credit card with airline miles or frequent flier rewards. If you often drive a car, consider a credit card with gas rewards. However, if you’re not a frequent traveler and you don’t have a car, a cash back reward credit card can be the best option.

Avoid interest rate and all extra fees. You can completely skip interest rate charges by paying your full balance each month. Keep in mind that credit cards with rewards typically carry higher APR than regular cards. You can also avoid other fees such as late fee and over-the-limit fee by submitting your payment on time and staying within your limit. By following the rules of your issuer, you will not need to pay the penalty fees.

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Do not chase after reward points. It is true that you can only earn points each time you use your credit card for payment. However, be careful that you do not charge purchases to your credit card just for the sake of collecting points. What’s more important is to carefully plan your spending; making sure that you can afford to pay off your balances in full and on time.

Redeem your points before they expire. Some reward credit cards impose expiration date on the points you collected. If you fail to exchange your points before the deadline, you could end up losing all your hard-earned points. If you’re still in the process of searching for the best rewards credit card, it’s a good idea to choose one that does not impose expiration on the points.

Make use of your perks and privileges. Aside from the actual rewards, you should also familiarize yourself with your privileges as a cardholder. Most of the best credit card offers non-monetary perks which can also enable you to save money. Examples of common perks are extended warranty protection, purchase protection, free car rental insurance, luggage reimbursement, etc. These non-monetary incentives can save you anywhere from $10 to as much as $1,000, depending on the provision. The perks may vary from one issuer to another and the type of reward credit card you own.

Read and understand the fine print. If you’re looking for new rewards credit cards, read the complete Terms and Conditions. If there are statements or phrases that are not clear, do more research and see to it that you understand its implications. If you’ve been using that reward credit card for some time, it’s still a good idea to review the rules every once in awhile. Also, don’t forget to read notices sent by your credit card issuer as there might be changes in the terms.

 

Author: Ann Wilson

Ann Wilson is the head writer of RewardCreditCardSite.com. 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 reward credit cards and start earning reward points. Copyright © 2012