Credit card companies have sweetened the deal on reward credit card deals. In preparation for the up-coming holidays, credit card issuers are offering bigger rewards to encourage more spending from their customers and attract new cardholders.
Do you own a reward credit card? Are you planning to apply for one before the year ends? How can you make the most out of your reward credit card? And most importantly, how can you avoid holiday debt?
1. Review the reward program. Even if you own the credit card for quite some time, it is still a good idea to read the fine print and review the rules of reward program before using your reward card for holiday shopping. If you’re still looking for a reward credit card, carefully read the fine print. Make sure that the reward system fits well with your lifestyle.
2. Don’t run up holiday debt. See to it that you don’t run up into a pile of debt in your attempt to rack up reward points. Before charging anything to your credit card, ask yourself, “Will I be able to pay off my full balance on time?” If you have doubts about repayment, skip the credit card use and pay with cash instead.
3. Check out affiliate partners. Most credit cards with rewards have partnerships with other merchants and establishments. Purchasing from affiliate shops can give you the opportunity to earn bigger points for every dollar you spend. For instance, instead of just 1% cash back, you can earn as much as 5% cash back if you purchase from an affiliate merchant. Aside from bigger reward points, you can also enjoy exclusive discounts from these shops.
4. Pay attention to rotating reward offers. Some of the best credit card offers rotates the reward to specific categories. For instance, you can earn 5% rebates on home improvement purchases for this month and a maximum of 5% cash back on department store, clothing, and toy purchases on December. The rotation may vary from one card to another so it’s important to check your own reward credit card’s offers.
5. Take advantage of bonus rewards. You should also check the opportunities where you can earn bonus points from your spending. For example, your rewards credit cards may offer bonus points once you reach $500 worth of purchases. If you are still planning to apply for a credit card, some reward cards offer instant bonus points simply by signing up or upon submitting your application.
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6. Don’t forget to check the limits. Some of the best rewards credit card imposes a limit on the value of rewards that you can earn for each period. For example, your reward limit may be $300 for each quarter which means you will stop earning points once you have reached that limit even if you continue using your card on purchases.
7. Avoid interest rate charges. The best way to benefit from the best credit cards is to avoid the interest rate fees by paying your credit card balance in full each month. Don’t be caught paying the late fees by submitting your payment.