Maximizing Credit Card Rewards Programs

2006-10-17

Many of us use our credit cards when paying for different types of products and services. It is a convenience that sometimes becomes an inconvenience… especially when we use these thin plastic cards we have in our wallets thoughtlessly. If you have carefully analyzed what your credit cards offer, you will discover that there are many options to using your credit cards wisely. You will discover that some credit cards give away air miles, hotel accommodation, gas, discounts at your favorite stores and event tickets, among many other things. Maximizing credit card rewards does not need a special formula. It sounds complicated but there are special ways and means to simplify this; thereby making the most out of the money you spend. All a person has to master is how to manage the credit card rewards properly.

Credit card rewards can be classified into these types: point-based or cash-backs.

• Point-based programs will normally require a credit card holder to accumulate points from the purchases made. These points match items that are found in a catalogue regularly given to the credit card holder. These points may also be used for credit on some promos the company may have and may serve as bonus points.

• Cash-backs or rebates are usually offered for individual items that are usually tied up with the credit card company (like when purchasing a particular brand of toothpaste --- doing so will enable the card holder to avail of a special discount or rebate from the purchase made).

Now that you have an idea of what rewards can be availed from your cards, below are suggestions on to how you can maximize your credit card usage:

• Make use of your credit card in these instances where it is recommended:

1) When paying for groceries or gas expenses, instead of using checks, verify if some of the items you need may be bought by making use of the rewards system.

2) Before each purchase, learn to identify which credit card offers the point based system or the rebate system and decide as to what you should use for the product you will purchase.

When you do this, you will realize from checking your bills later, that you have made a great deal of savings. What’s more, some card companies even offer additional rewards if you frequently use the card for purchases availing their rewards system. However, look for limiting conditions as some rewards may have already expired once you have reached a certain limit, and then you may not be able to avail of this anymore.

• Couples can actually collectively benefit from their credit card rewards program. If there’s only one of you availing of it, you may ask for an extension card from the bank or company, thus entitling you to double the benefits.

• Why not consider paying your utilities online with the use of credit cards? Doing so actually help you earn back points, which you can later on use as the need arises.

• Are there items you like that may be offered as rewards? Then consider using your credit card for things like these. If you are eyeing a Ford car for example, then use a credit card which rewards big discounts for this type of car. Love travelling? Get credit cards offering air miles. Love Starbucks? Use your card for rewards like a free Starbucks coffee.

• Carefully check the fine print found on your credit card applications before you submit them. Some offer 0% interest, while others have special schemes for certain products or promos. Inquire of these from the company so that you may know when you should use or avail of them.

• The annual fee varies from credit card to credit card, so also check for this before you avail of the services.

The right way to view these rewards is this: think of them as a way to save cash on items that you would purchase anyway. Credit cards offer cash-backs on supermarket purchases, use it. Some promos offer a 10% discount on your first use, so do it. Your objective for using the credit cards is to determine which expenses should be optional and which should be non-flexible so that you may be able to maximize the rewards.

Related Articles:
» Ten Things Your Credit Card Company Will Not Tell You
» What Your Credit Card Company Will Not Tell You
» How To Avoid Hidden Credit Card Charges

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