How to Make Your Credit Card More Rewarding

Owning a reward credit card is not enough to enjoy the benefits it offers.  As a card holder, you need to know the right strategies and be able to manage your account effectively in order to really get rewarded.  On this post, we discuss practical tips on how you can make your reward credit card even more rewarding for you:

Don’t carry a balance.  Since reward credit cards usually carry higher APRs than regular cards, the best way you can benefit is to avoid the interest rate charges as much as you can. How is this possible?  All you need to do is pay your full balance on time each month and you should be worry free about APRs.

Choose a card that fits your needs. Individuals have different lifestyles so it’s important to consider your personal spending style and choose a reward credit card that fits well with it.  What types of purchases do you plan to use the credit card for?  How often do you plan to use it?  Which stores do you frequently purchase from?

These are questions that can help you determine what your personal spending style is.  Afterwards, look for a reward program that complements your lifestyle.  The ideal reward credit card should not force you to go out of your way or spend more than what you can afford just to earn rewards.

A simple program is best.  Some reward credit cards have very complicated reward systems which can be difficult to understand and remember.  Unless you have experience in handling reward credit cards, it’s best to stick with a simple program.  Will this be your first time to use a reward program?  If yes, avoid reward credit cards with too many rules and conditions.

Plan your spending.  Although you want to use your reward credit card as often as you can, you should avoid unplanned purchases.  Don’t forget rule number one which is to avoid carrying a balance.  If you’re not sure whether you can pay off the full amount by your due date, forget the purchase. Do not put yourself at risk of bad debt just to earn rewards.

Buy from affiliates.  Find out which shops and establishments are affiliated with your reward credit card.  Patronizing affiliate merchants will enable you to earn bigger points from your spending.

Charge utility bills to your reward card. Here is a reward credit card strategy to help you rack up points without buying anything:  use your reward credit card to pay monthly utility bills such as electricity, cable, internet, etc. First, check the fine print and make sure that you will be able to get points for these transactions.  Next, pay off your credit card balance immediately to avoid interest rate charges.

Avoid violations.  Some reward credit card issuers penalize their cardholders by imposing fees but you might also lose your points if you’re not careful.  For example, if you miss your due date of payment, you could lose all the points you collected within that billing cycle aside from incurring the late fee. Familiarize yourself with your credit card’s rules to avoid committing a violation.

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