There are plenty of perks to card rewards, and if you play your cards right it can include an assortment of benefits that are worth your while.
But to get the most from credit card rewards, you need to be savvy about your personal finances and how you choose to use any available reward options.
The sign-up bonus is the most common type for rewards, but it’s important to understand a few things before doing so for just any card that offers this. Cards have minimum requirements, such as an amount within a time period to collect the points or rewards. For this reason, most only manage one to two cards at a time to be eligible and collect.
The first thing to know is break the cash habit, and use every possible purchase with your card, from groceries and gas to any of your other regular expenses. Paying your bills with your card also adds up, but watch for fees charged for credit card payments, as it’s usually not worth it.
Shopping at online portals is often an easy and convenient way to earn additional points or miles from purchases, with some offering cashback as well. Stacking rewards in this manner helps you earn a lot more.
Another tip anyone can use is to buy gift cards as presents, or even for yourself. Not only do some offer bonus rewards, you can use them for card minimum spending requirements.
Naturally there are a number of mistakes one can make, and the first place to start might be to make sure there aren’t any annual fees associated with cards you signup for. Also knowing when points may expire is clearly a good idea too.
While experiences are a great use of rewards, paying down any outstanding debt would be the wise move. Note that if you carry credit card debt, it wouldn’t be wise to be pursuing credit card rewards and best to take care of your finances, create a budget, and develop good spending habits before pursuing card rewards.