Credit card rewards have been increasing and morphing in hundreds of different directions ever since the advent of the Cash Back Credit Card from Discover. Whether it is air travel you are after or cash back on purchases, exotic vacations or cheap theater tickets, there is a reward credit card that can help you get what you want faster.
Here are a few tips to keep in mind when shopping for the right rewards credit card for you:
* Do you pay the entire balance on your credit card every month? If you don't, then a reward card might not be right for you. If you maintain a balance on your credit card the interest that you pay each month may exceed the value of any rewards you might accrue. You should either get into the habit of paying the entire balance every month, or look instead for a low interest credit card to save money.
* Check the points. Know how much you need for a card reward before you commit on the card. For example the number of points needed for a round trip coach ticket varies across different credit cards. Make sure that you get the best deal that you can find.
* Check the expiration date on those points! Rewards points that never expire are getting more and more popular, but some cards still offer points that expire after a period of time. Depending upon how fast you earn points, it may take you some time to earn points for high-end rewards, so as you shop for a rewards card look at their policy on point expiration. Try to find a card that offers points that never expire.
* Know which purchases give you the biggest reward for the buck. Some purchases will net you more points than others, and some purchases might not net you any points at all. Many airline rewards cards offer point bonuses for purchases of air travel. Some American Express cards offer double points for purchases of gas and groceries. Make sure you understand the credit card agreement and pick one that will maximize your receipt of points given your spending habits.
* Learn to pay your bills with your credit card. This is an easy way to rack up points. Most power, cable, gas, oil, grocery and phone bills can be paid by credit card these days. Get into the habit of paying those bills by credit card and then immediately transferring the amount of the payment from your checking account to your credit card.
* Maximize sign-up bonuses. Many reward cards will offer bonus points just for signing up, or for the first purchase with your new card. Try to choose a card that offers the most up-front points - often they can get you half-way to your first reward.
I have a big family - grocery bills alone can amount to $200 per week, and I pay for everything with a rewards card. Using the above techniques I have been able to cash in on free round trip airfare in as little as two or three months. That's a huge savings! It has allowed me to take trips, visit friends and go to events that I probably wouldn't have gone to if I had to purchase airfare, and that fact is more valuable than the cash savings! Try it - it'll work for you too.
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