Rewards Credit Cards Aren’t All Bad
There Are Many Ways To Benefit From Rewards Credit Cards
I’m often warning people about the dangers of rewards credit cards -- such as higher interest rates, etc. However, I want to make it clear that I don’t think rewards credit cards are a bad thing. On the contrary, they can actually make wise spenders money for doing absolutely nothing. It’s a matter of knowing when and how to use them.
Five Tips For Winning With Rewards Credit Cards
If you want to make your rewards credit cards work for you, these are the basic rules you need to follow:
1. Don’t buy something you normally wouldn’t just because you’ll earn points or get cash back.
2. Don’t charge a purchase to your rewards credit card unless you are sure you can pay off the balance in full at the end of the month. If you won’t be able to pay the balance in full, use a low-interest credit card rather than a rewards credit card.
3. Maximize your rewards potential. For instance. If you need gas and you have $40 cash, but your rewards card is offering five-percent back on gas purchases, charge the purchase to your rewards credit card so you’ll earn the five-percent rebate and then put the $40 in an envelope so you’ll have it when the credit card bill comes in.
4. Pay attention to your rewards balance and the expiration terms of your rewards credit card. If your rewards expire, you’re going to want to know about it before it happens. Nothing is more frustrating than racking up hundreds of dollars in rewards and never being able to redeem them because you let them expire.
5. Keep an eye on your rewards credit card’s maximum award policy. If your credit card limits the awards you can accumulate annually, keep an eye on it and then when you hit that limit, start using a different rewards credit card so you can still earn rewards for your credit card purchases.
By following this advice, your rewards credit cards will be working for you instead of working for your credit card company.
If you’re not sure whether you have the best rewards credit cards available, you should check out this rewards credit cards website.