Rewards credit cards are so common today because of the increasing competition among banks and credit card issuers. When used correctly, a credit card can be a great tool in managing one’s finances. How can you take full advantage of your credit card rewards?
To get the most out of a rewards credit card, it’s important to choose the type of reward that fits your way of life. For instance, why would you pick a travel reward card if you don’t travel? Travel rewards programs require huge points before you get entitled for a free travel. If you know that you will not be making large amounts of purchases on your credit card, then it’s not practical to choose a Travel Rewards credit card because it will take you a very long time before you gather enough points and get the free travel. Therefore, travel rewards credit cards are great for those people who frequently flies abroad and spends a lot on their credit cards.
If you’re not a frequent flyer, perhaps you can choose a gas reward credit card. This card lets you enjoy discounted gas rates and free fuel. However, usually you can only avail of your privileges from the affiliated gas station. Since this is the case, make sure that there is an affiliate gas station in your local area or else, you would have to drive all the way to the next city each time.
If it’s a cash reward credit card, you may only be entitled to earn points or use your points if you’re going to buy from affiliate shops or establishments. If so, see to it that these are the shops that you frequently go to. Furthermore, if the affiliate stores are way too expensive, then perhaps it’s not practical to do your shopping there just to get a reward. Look for a cash reward credit card which has affiliates with affordable stores and even thrift shops.
Another thing to consider would be the restrictions implied on claiming the rewards. Does the credit card set a limit to the amount of rewards you can get? For example, a credit card may offer a 5% cash reward for your purchases but once you’ve reached the total of $500 from your rewards, you will not be entitled to receive any rewards from then on. Also, a credit card may set a time frame for collecting points. You may be allowed to collect as much points as you can for the whole year but on the next year, you may have to start collecting again from scratch. To enjoy the most out of your rewards, pick a credit card that doesn’t set a limited time period for gathering points. Also, try to find a credit card that rolls over your unused reward points whenever you renew your membership.
Selecting the rewards credit card that offers reasonable terms and exactly the rewards you want may require some researching on your part. However, taking the time to study your options is well worth the effort. Take advantage of websites that offer reliable reviews on different rewards credit cards in the market. Most of all, read the entire agreement form and make sure that you do understand all terms clearly before signing up for the credit card you’ve chosen.