Choose Your Rewards Credit Card Well

Category: Finance, Credit.

Okay, so you ve applied for a rewards credit card. How can you maximize your returns for your reward credit card?

Now what? If you ve chosen the right reward credit card, then you should have no problem in earning points more quickly. If not, then it s not yet too late to make a switch. Consider what type of reward credit card you have and see if it matches your spending habits. If you re still planning about getting a reward credit card, then take your time in choosing the one that is most appropriate for your needs and lifestyle. How do you normally use your credit card?

Choose your rewards credit card well. Do you usually use it to pay for your monthly expenses such as groceries and utility bills? Or do you travel a lot and spend more on hotel accommodations, car rentals and plane tickets? Does a large amount of your budget go to your car maintenance and gas expenses? Based on your lifestyle, you can choose whether a cash- back credit card, a gas rewards credit card, or a travel rewards credit card will be best for you. Reward credit cards with the best deals are only offered for those who have excellent credit rating.

Check your credit report. Check your credit report and see if there are some steps you can do to improve your credit. Whichever rewards credit card you choose, there is usually a 0% introductory offer that you can avail off. Take Advantage of the 0% Introductory Offer. The best ones are those that give a 0% APR on both purchases and balance transfers for a whole period of 12 months. There are credit cards that give a reasonable interest rate even after the introductory period expires and that s the reward credit card you want to have. Most reward credit cards come with a high interest rate so if you choose the one with 0% APR on purchases and balance transfer for a whole year, that would be a great savings and convenience on your part.

Ask for additional cards. The points earned from additional cards still go to the main card holder so you get to earn more rewards at a shorter time. Some reward credit cards give additional cards for other members of the family or even friends of the card holder. Pay off your monthly balances on time. Unless you re still within the 0% introductory period, then you can afford to incur a remaining balance and pay it off for the next month. Even if you intend to earn as much points as you can, don t use your credit card for purchases if you know that you can t make your monthly payment on time. Remember that reward credit cards have higher rates and if you often incur a monthly balance, the amount you pay for your interest may be worth way more than the value of the rewards you actually get.

If your credit card gives you a point for general purchases, then take advantage of it and use your card to pay your telephone bills, electricity and cable. Use your credit cards to pay your utilities. Since you really have to pay for these bills one way or another, why not use your card and collect points at the same time instead of paying in cash?