Card issuers do not have a hard time marketing their credit card rewards program because people actually get thrilled with the thought of being rewarded for spending. The keyword, however, is planning. Be it a large purchase or a simple transaction charged to your credit card, it is necessary to have a plan on how to get more out of your reward credit cards.



Here are some steps you can take to leverage your normal household spending to generate points from your reward credit cards.

- Always pay in full and on time. Keep in mind that reward credit cards attract interest rates in the high teens and may not be advisable for those who intend to carry a certain level of debt. Carrying a balance will subject you to interest charges and completely negate the benefits of rewards. So will late payments, which attract stiff penalty fees. Aside from this, your points maybe forfeited and your capacity to earn points suspended if you miss your payment due dates.

- Be aware of your spending profile. There is a bewildering array of reward credit cards, and each scheme tends to fit a different spending pattern. The card may put together a strange set of items which qualify for their rewards and cash-backs. Reward credit cards should fit your spending profile making it possible for you to maximize points earned or cash-backs from your spendings. If you travel a lot, you may need frequent flyer cards with rewards for miles and hotels, such as those offered by American Express credit cards. If you do not want to lose any points in the conversion to products, you can opt for cash-back reward credit cards.

- Maximise reward credit cards usage. Many people write a cheque, pay cash or use a bank debit card for groceries. Take advantage of the potential for greater points with needed grocery spending. Use the cards for online payments on household bills (if your utility company allows it and if there is no additional fee imposed on card payments. Check if it is possible to pay your monthly mortgage or rent by credit card. These necessary recurring expenses will give you substantial rewards earnings each month. But make sure to pay them all off every time because interest charges on the large amounts involved will erase the value of your reward points. And, make sure there is enough room in your credit limits (you can always ask the card issuer to increase your credit limit).

- Make sure there are no blackout dates. Some reward credit cards limit the validity of your earned points by putting expiration dates. All your hard-earned points will be for naught since you can no longer redeem them after the expiry. Pick the reward credit cards that do not have these restrictions so you can enjoy what you have earned regardless of how long it takes.

It would be advisable to charge to your rewards credit card as much of your household spending (whether necessary or discretionary) as you can. This will help you maximise your credit card rewards. In addition, it will be easier for you to track all your monthly outgoings through the monthly statement.