Credit cards offer a number of benefits when used responsibly. Not only can they help you with your day-to-day expenses and build your credit history, a rewards credit card can provide a number of perks that can help you with major purchases, savings goals, or travel.
But how do you ensure you’re getting the most out of your rewards credit card? Below are five simple tips for you to follow to maximize your credit card rewards.
Choose the right credit card
The best way to ensure you’re earning the maximum credit card rewards is to make sure you choose the best credit card for your spending habits and financial goals. If you’re only interested in minimizing costs and maximizing savings, a no-fee, cash-back credit card might be right up your alley. If you don’t mind paying a fee and you want to redeem your points for flights or hotel stays, a travel rewards credit card might make more sense for you.
Make one card your primary payment method
Most people have more than one credit card and will often use different cards for different purchases. However, if you’re trying to maximize your points, you’re better off charging as much as you can to one single card and using your other cards for emergencies. This maximizes the amount charged to the card and the amount of rewards you earn.
Use it for recurring bill payments
One of the easiest ways to earn rewards is to pay regular bills using your credit card. If you set up automatic payments for regular bills (for example, your cellphone or internet bill), not only will you earn credit card rewards for these purchases, you won’t have to worry about remembering to pay these bills every month.
Collect rewards with a goal in mind
When trying to make the most out of your credit card rewards, one of the best things you can do is determine what you’re trying to accomplish by earning these rewards in the first place. If you’re using a cash-back rewards credit card and have a savings goal in mind, calculate how much money you can expect to earn from your spending and when you’ll receive the money.
If you’re using a travel rewards credit card, think of the trip you want to take and calculate what the best way is to use your points. Do rewards points go further when paying for domestic or international flights? Do you you get a better deal on hotels instead of flights? Knowing this will help you get the best bang for your points.
Take advantage of bonuses or promotional offers
Many rewards credit cards offer promotions and bonuses that let you earn more rewards for a limited time, for special purchases, or at certain retailers. If these fit within your budget and doesn’t prompt unnecessary spending, make sure to take advantage of these offers. It’s an easy way to accumulate points more quickly and get you to your rewards goals faster. Rewards credit cards sometimes offer discounts on the number of points you need to redeem. So if you have a purchase or a trip in mind, make sure to check regularly to see if you can get it for a smaller amount of points.
The bottom line
Credit card rewards are a great way to benefit from your regular spending at no extra cost to you. Take the time to find a rewards credit card that can help you earn points faster and get you closer to your goals.
You may also be interested in: The Dangers of Credit Cards
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