How to Really Maximize Your Credit Card Rewards

Credit cards with rewards are enjoying huge popularity among consumers. Everybody wants to get rewarded but the question is, are you really getting the most out your own reward credit card? In truth, getting rewarded largely depends on how well you can manage your account. In this article, we present smart strategies that you can apply to maximize your chance of getting rewarded.

1. Choose the Right Rewards Cards

You need to start with the right type of reward credit card. So how do you know which one is right is for you? What kind of purchases would you usually charge to your credit card and how often would you use it? Generally, reward credit cards offer 1 point for every 1 dollar worth of purchase but the type of reward offered may vary from cash back, hotel discounts, airline miles, gas rebates, etc. Which reward program matches your personal spending and lifestyle?

2. Don’t Sign Up for Teaser Offers

Some issuers offer low or zero introductory rates as part of their marketing plan. Customers are often easily enticed by a low rate or higher reward points but these offers usually do not last for long. Perhaps you might be able to enjoy a low rate for at least six months but what happens after that? Will you be stuck with a high-rate reward credit card? Maybe you can enjoy 5% cash back for three months but when the promo period expires, you may find that the value of rewards has dropped down to only 1% or even less. When looking for a reward credit card, don’t immediately sign up for the teaser offer. Always consider the long term implications of your choice.

3. Use your reward credit card for items or bills you will pay in cash.

The best way to earn points is to charge purchases to your reward credit card. Why not use it to pay for necessities that you will pay in cash anyway? Use your reward credit cards to pay your groceries and medicines. Charge your monthly utilities to your reward credit card, too. However, if you plan to do this strategy, there is one thing you should not fail to do. It is to use your cash to pay down your credit card charges in full and on time.

4. Pay in full and on time.

There is no need to wait for your due date before submitting your payment. The earlier you can pay your credit card bills, the better it would be for you. Don’t be content with just the minimum payment. Always pay your monthly balance in full.

5. Take advantage of perks that your reward credit card offers.

Surprisingly, many reward cardholders are not taking full advantage of the perks and privileges that their credit card provides such as travel insurance, extended warranty, price protection guarantee and more. Why pay the extra cash to get a separate travel insurance or to extend a warranty when your reward credit card provides it for you for free? Review the terms and conditions of your credit card and get to know your privileges as a cardholder.

Read More: How to Really Maximize Your Credit Card Rewards