subject: Use A Rewards Credit Card And Get Rewarded [print this page] Credit cards that offer reward programs are supposed to give back to their cardholders. The advertisements promise that you will get rewarded, but is that true from your experience? If you own a reward credit card, can you really say that you are enjoying incentives and perks? Or do you find yourself paying more on rates and fees?
What is the secret to getting rewarded? How can you get the most from your reward credit card? Take a look at the following suggestions for everyone who owns a reward credit card:
1. Do not carry a balance from month to month. If you will not completely pay off your monthly charges, it might be better for you to get a non-rewards credit card with low rate. Most credit cards with rewards have higher APR than non-rewards cards. Imagine how much you will spend if you keep paying the monthly interest rate. In order to really get rewarded, dont be content with just paying the minimum. Make it habit to pay your monthly balance in full.
2. "Up to" is always conditional. If you see the term "Up To", it is always subject to the issuers conditions. If a reward credit card offers "up to" 5% rebates, the maximum value of rebates you can earn is 5% but that does not apply on all your transactions. You can only earn the maximum value if you meet the criteria of your issuer. For instance, you may get the full 5% rebate only if the purchase was made from a shop or establishment that is affiliated with your reward credit card.
3. Plan your purchases ahead. Never shop with your reward credit card without a list. Its too easy to get enticed to spend more when the thought of collecting more points encourage you. However, can you really afford to pay your purchases in full and on time? Creating a list will help you avoid splurges or unplanned spending.
4. Stick by the limit. Be careful not to exceed or maximize your credit line as it can harm to your personal credit score. Ideally, reward credit cardholders must keep their monthly charges minimal, not exceed 30% of their allotted credit limit.
5. Redeem your points before they expire. Some reward credit card issuers impose blackout dates. If your reward credit card does, you need to be aware about the status of your account and be sure to redeem your points before they expire. Better yet, find a reward credit card that does not impose blackout dates or expiration on points.
6. Avoid penalty charges. Reward credit card issuers usually have more rigid rules particularly when it comes to submitting payments. If you will not play the rules, the fees can really hurt you. For instance, if you are late in submitting your payment even just for one day, the penalty fee can really cost a significant amount of money. Hence, the best way to manage a credit card with rewards is to know the rules and avoid penalty charges.
