Maximize Your Credit Card Rewards

Would you like to know the secrets on how you can maximize the potential of a reward credit card? In reality, many cardholders are not getting the full benefits they deserve for one reason or another. In this post, let’s talk about the techniques on how to get the most from your credit card rewards.

1. Begin with the Right Reward Credit Card.

Credit cards with rewards are not all made the same. There are credit cards that may be fitting for some people but not for you. It’s very important to know your own spending style and find a reward credit card that will complement that.

Furthermore, although credit card companies a wide variety of rewards, most of them offer 1% or 1 point. Indeed, there are different types of rewards such as airline miles, gas rebates, hotel discounts, merchandise, gift check, etc. Typically, you would be awarded with 1 percent cash back for every 1 dollar you charge to your reward credit card. Look for a reward credit card that you can use more frequently and one that offers the type of reward you can enjoy.

2. Don’t sign up for the promo.

Don’t apply for a credit card based upon the promotional offer alone. You may find that a credit card offers up to 5% cash back. Should you choose this card over the other that offers only 1% cash back? Before you do, you’ll want to check out a couple of things first such as the length of the promo period, the regular rate of interest, the fees, the reward system, etc. Keep in mind that an introductory offer does not guarantee a good reward credit card.

3. Choose Cash Back.

Many people would take a travel reward credit card over a cash back thinking that they can fly for free. However, getting that free flight may cost you more than you expect. You might need to spend literally thousands of dollars first before you get rewarded. IF you’re not a big credit card spender, a cash back credit card might be a more practical choice for you.

4. Plan your credit card spending.

Create a plan for collecting points so you can avoid overspending. Consider your monthly income and distribute it according to your expenses – groceries, purchases, utilities, debt repayment, insurance, etc. Make a list of purchases that you plan to charge to your reward credit card. See to it that you can pay your balance in full on time at all times.

Related Post: How to Make the Most Out of Your Credit Card Rewards

5. Avoid interest rate and penalty charges.

Don’t spend your money on extra fees such as interest rate, late penalty charges, cash advance fees, etc. Pay your credit card bill on time and stick within your credit limit. By doing so, you will truly benefit the rewards that your credit card has to offer.

 

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

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