Are you getting the most out of your reward cards? Some card holders play the rewards game like it's going out of style, even designating certain reward cards for specific types of purchases. They buy gas with one card, groceries with another, and online purchases with still another. And keeping up with the rules of all those cards is enough to give the average card holder a headache! If you don't have that much time (or patience), you can still reap the benefits of reward cards by following a few simple rules.
First, choose a reward card that gives you something you really need. If you're a pet enthusiast, you might benefit greatly from reward cards that give you points for buying pet merchandise and veterinary services. On the other hand, a reward card that gives you points for shopping at Amazon.com isn't going to benefit someone who doesn't shop online. If you're a frequent traveler, look for cards that can help you with gas purchases, rental cars, and airline miles. Avoid trendy reward cards that get you fancy rewards (such as helicopter rides or front-row tickets to events) unless you're a die-hard entertainment buff. Rewards on everyday items, such as gas and groceries, will prove more valuable in the long run.
If you've got a predictable, recurring charge that matches your reward card, use the card to pay it. You'll soon see those reward points adding up. And speaking of points: remember that they don't last forever. Yours might have an expiration date, so check with your card company to see how long your reward points will be valid. Also, be sure to ask about any special promotions your card company might be running. Some specials will help you rack up those points faster. Also, if you need office supplies for your job, see if you can reach an agreement with your company whereby you charge the supplies to your reward card, the company reimburses your expenses, and you keep the reward points.
Avoid making late payments. This can cause your reward points to be forfeited. If you have already lost your reward points, call and negotiate with your card company to have some or all of them reinstated.
Finally, make sure you know how to redeem your reward points. It sounds like a no-brainer, but some reward card point systems are more user-friendly than others. Some have easy-to-navigate online catalogs; others don't. If you're unsure how to proceed, read your credit card agreement or call customer service for an explanation. They will be happy to assist you in redeeming your points.
Like other credit cards, reward cards vary in value. Rewards that greatly benefit one card holder might be worthless to another. Shop around online for reward cards that give you points for things you would purchase anyway. That way, all you have to do is go about your daily business to start earning reward points. Now that's rewarding!
It all sounds quite impressive ? you use your credit card as you would any other card, but each time you use it you are earning ?points? toward your chosen reward, whatever it may be. These cards can be a real boon to your vacation, your Christmas shopping, and perhaps even your clothes closet. But there are some things to be aware of, to be on the lookout for and to careful of.
Not all rewards cards are created equal. That is, some have restrictions that might result in you deriving little benefit from the card. Let's look at some crucial considerations you should make when choosing a rewards card.
First, consider why you want a rewards card. Do you want to earn airline miles? Gift certificates at certain stores? Whatever it is, make sure the card offers the right type of reward for your needs. If you choose an airline card, but that airline only offers limited flights from your local airport, you should find an airline card with which you can really maximize any benefits you get.
Likewise, if you find a card that offers double points on purchase like gas and groceries, but you use your card primarily for purchases of travel and clothing, you won't earn as many points.
The lesson here: Read the fine print so you can get the best bang for your rewards credit card buck.
Second, always read the fine print before you sign up. It might sound like it's easy to earn rewards but you might find that with most cards points are not matched dollar for dollar. That is, if you spend $100, you don't necessarily earn 100 points (or miles, or whatever your card rewards you with). You might earn 500 points for every $1,000 in purchases. If your card rewards you with gift certificates at a favorite store, you might have to spend $1,000 to earn a $10 credit.
The lesson here: This lesson is the same as our last one, which is read the fine print and, in this case, do a little math. With the fine print at your fingertips, do the math to figure out if this is a good deal for you. Will you spend enough money each quarter or year to earn satisfactory rewards?
Third, use the card as often as you can. Of course, you don't want your balance revolving from one month to the next, but charge everything you would normally use cash for. If you know you'll pay the balance each month, then it makes sense to pay for everything with your rewards credit card ? you'll be surprised how quickly your rewards will grow when you use the card for everything from gas to groceries to movie tickets. And don't forget recurring charges ? like your satellite or cable television service, your utilities, and the like. If you can use a credit card to pay for these services, do.
The lesson here: If you are careful with credit, you can earn your rewards quickly by remembering to use your card for a multitude of purchases.
Finally, don't lose your rewards. Pay attention to expiration dates (or blackout dates) or anything else that might affect when and how you can use your rewards. It would be a shame to be diligent in earning the rewards only to lose them because you didn't pay attention to that bit of fine print.
Both Janna Weiss & Debbie Dragon are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Janna Weiss has sinced written about articles on various topics from Finances, Free Credit Report Score and Credit Cards. At CreditorWeb.com you can compare and find the perfect card for any small business.. Janna Weiss's top article generates over 27100 views. to your Favourites.
Debbie Dragon has sinced written about articles on various topics from Finances, Credit Cards and Kitchen Home Improvement. Read reviews for and cards from all other major issuers at CreditorWeb.com.. Debbie Dragon's top article generates over 165000 views. to your Favourites.