How To Get The Most Out Of Credit Card Rewards Programs

Credit card rewards programs are loyalty program issuers run to encourage taking up and using their cards. You get cash back, credit card reward points, or other perks for every transaction. Therefore, the more you use your card, the more rewards you’re eligible for, and the more the issuing company makes as interest. But, the interest you pay is higher than the rewards you get. So, the more you spend, the more the issuer earns.

While you cannot evade using credit cards because they are essential to building or rebuilding your credit , you can make the most of them by capitalizing on the rewards programs. Earn as much as you can. LendMeMoney.com has some tips to help with that.

Top 5 Tips to Make The Most Out of Credit Card Rewards Programs

Here’s what to do:

Get credit cards whose rewards programs match your spending habits

It’s one thing to have a credit card with an excellent rewards program, but if you’re not using it, you will not earn credit card reward points or redeem them for rewards. So, find a credit card with a rewards program that aligns with your lifestyle. For example, there are travel cards for avid travelers, and you can earn points that you can redeem for free hotel stays, flights, and other travel itineraries. Cash-back credit cards put more money in your hands for gas, groceries, and other everyday expenses. Moms and dads who buy in bulk could get the highest returns using Amazon Prime Visa cards. So, find a card that best suits your spending.

Take note of the bonus categories

Credit issuers often have different credit card reward programs for various spending categories. For example, you may earn a 5% cash back return for spending on department stores and 1% on dining. So, maximize the higher return rate and spend more on the department stores. Of course, this is not to suggest changing your spending habits. However, taking note of these categories will help you earn the maximum credit card reward points possible.

Charge all your purchases on your credit card

Since you earn rewards on purchases, ensure that all your purchases are charged to your credit card. It’ll ensure that you get something back for every dollar spent. But be careful not to spend more than you can afford. The trick here is to pay off the credit balance immediately so the credit balance doesn’t spill over to another billing cycle and to avoid interest charges on late payments. The interest incurred will eat up all the rewards you’ve earned.

Suppose your credit cards have a rotating rewards categories program. Opt-in to be eligible for your favorite categories and earn some extra rewards. If you plan to buy some things in these categories, postpone your purchases to when the rewards are available. Set up a reminder.

Use several cards

Don’t depend on a single card for rewards. Take up multiple cards, going by your interest in their credit card rewards programs and how they match your spending interests. Also, for each credit card you qualify for, take up their generous sign-up bonuses called welcome bonuses. However, note that in most cases, issuers require you to spend a particular amount in the first few months of carrying the card to receive the bonuses. But, once you do, the bonuses translate into hundreds of dollars, which gives you more spending money.

Pay your credit card bill in full

It helps to put all your purchases on your credit cards, but be sure that you can pay the balance in full each month. A revolving balance will negate your rewards because it attracts interest that you must pay in addition to your current statement. So, instead of paying the minimum payment requirement, pay the credit balance in full to avoid incurring interest, and you can take full advantage of the credit card rewards programs

You Can Maximize Your Credit Card Reward Points

Credit cards can be an excellent tool for earning rewards on your spending when used responsibly. To get the best out of them, get cards that match your spending habits, charge all your purchases on the cards, and use several credit cards to take advantage of more rewards programs. Also, ensure you pay your credit balance in full each month and pay attention to the fine print to abide by the issuer’s conditions. Find the best offers today at LendMeMoney.com!