A reward credit card can be your perfect partner especially this holiday season. However, the only way you can truly benefit from a reward credit card is to use it strategically. Consider the following tips on how to use a reward card to get more from your spending:
Rack up those points. The more you use your credit cards with rewards to pay bills and make purchases, the more points you can earn. Are you planning to buy gifts for the holidays? Are you planning to put together a feast for the family? If yes, you can take advantage of this opportunity to use your reward credit card for these expenses and get rewarded at the same time.
Understand the reward program. Different issuers have varying reward programs so it’s important to be familiar with your own credit card. Have you been using your reward card for quite some time? Even so, it’s still a good idea to review the Terms and Conditions of your reward credit card before using it for spending. Get to know your privileges as well as your limits as a cardholder.
Buy from affiliates. Most rewards credit cards are affiliated with merchants or businesses. You can earn bigger rewards from these “qualifying purchases”. For instance, you might be able to earn the maximum 5% rebate if you purchase from a specific department store or shop.
Use your reward credit card to pay utility bills. If you already have saved enough cash to spend for the holidays, you can still use your reward credit card to pay for monthly utility services such as telephone, electricity, cable, internet, and others. Thus, you can earn points even without making a single purchase.
Don’t let your reward points expire. Are you aware of the rules particularly when it comes to redeeming rewards? Some credit cards impose an expiration date which means you could lose your hard-earned points if you fail to redeem them on time.
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Don’t max out your limit. Although you want to rack up more points with your credit card with rewards, be careful that you do not max out or exceed your credit limit. Keep in mind that if you max out or exceed your limit, you will not only get penalized with fees, your credit score will suffer too. Be sure to check your balance before using your reward credit card for your holiday shopping.
Pay off your credit card balance in full. Reward credit cardholders should pay off their monthly balance in full to avoid high interest rate charges. Plan your repayment to be sure that you will be able to submit full payment on time.
Avoid violations. Did you know that you can lose the chance to get rewarded if you fail to submit your payment on time? Yes, even a single late payment may cause you to lose all the points you earned for that period. Aside from avoiding the late penalty fees, timely payment will ensure that you can enjoy the rewards you deserve.