Lots of people are wary about credit cards, and for good reason. If you don’t exercise caution by only using a credit card for purchases you can afford, it’s easy to get into debt. And the thing about debt it…it’s not so easy to get out of.
Nevertheless, there are benefits to using a credit card instead of other means of payment. Credit card companies want you to use them, and that’s why they implement rewards systems. So make your credit card reward you by following these simple tips.
Credit Card Reward Tip 1: Don’t be tempted or swayed without comparing cards first.
A card with sweet rewards might not be worth it if you overlook the fact that it’s got a higher interest rate or pesky annual fees that’s you’d be better off avoiding. There are all kinds of blogs, articles, and specialty websites that let you compare credit cards side by side. Don’t sign up for a credit card on impulse! Do your research first.
Credit Card Reward Tip 2: With credit cards, less is more.
Just because you can have a dozen credit cards doesn’t mean you should. The more cards you have, the slower you’re going to earn rewards because you’re spreading your spending onto different cards. Select your rewards with care so that you’re not putting tiny drops in a bucket that you could be filling and reaping the rewards.
Credit Card Reward Tip 3: Choose a card with your personal spending habits in mind.
There’s a card for every consumer, so sign up for one that’s going to dole out rewards where you need them. If you love to travel, maybe opt for a card that rewards you with airline miles. If your job requires that you make a long commute in the car, maybe a card with gasoline discounts is the one for you. If you’re not sure any of those options are worth the payoff, then perhaps you just want a card that offers cash back.
Credit Card Reward Tip 4: Put most of your spending on the card that rewards you the most.
In some ways it’s a no-brainer, but it bears mentioning, anyway. The only way you earn rewards is through spending, so spend on the card that’s going to reward you! Of course, that doesn’t mean you should spend money you don’t have just for the sake of rewards.
Credit Card Reward Tip 5: Watch out for expiration dates on rewards!
These are the quirky little details that companies try to hide, but if you make sure you’re well-versed on the terms of your card and your rewards, you’ll get the payout every time. Don’t let good rewards go to waste just because you didn’t know they were about to expire.
When you use your credit card, every small purchases can count towards big rewards. It’s all about knowing what benefits each card is good for, and signing up for the ones that are going to be the most helpful to you.
SOURCES: Credit Cards
IMAGES: Financial News | Social Moms | Bill Guard