What is the point in having a credit card and not getting points for it? Although the interest rate may be higher on some of the reward cards, if you are being responsible with your spending and paying off your debt, earning the points should be practically free! If you are going to spend, then you might as well earn something back for all your valuable spending.
Credit cards can get complicated and understanding what your card has to offer definitely takes some research. But with the internet, all this information is right at your fingertips!
Here are some tips that might help you make the most of your credit card rewards:
First: Choose the Best Card for You
There are so many cards out there and you should choose the one that is right for you. Do your research and make sure you read the fine print before signing up for a card. You don’t want to be stuck paying yearly fees or extremely high interest rates if you aren’t able to pay off your credit card right away. Check out this article from our partners at MainStreet.com on how to pick the best credit card.
Compare Your Prices
If you get a credit card that offers both cash back and rewards make sure you are comparing your prices. Often times you might be able to get something like an iPod shuffle for 12,700 points but can get $80 in cash for 10,000 points. If you compare how much an iPod shuffle costs in the store ($69.00 for the same size), you would realize that getting the cash back and purchasing it in the store would cost you less (and you would have some cash left over too!). Doing your research helps! If you see a product on your credit card rewards website, make sure you are comparing how much it also costs in the store.
Don’t Cash Out
If you don’t need the money, don’t cash out or claim your rewards until you see something you really want. Yes, having cash right then would be great, but seeing your rewards grow is a great way to save. Your credit card points don’t usually expire, so once they are there they are yours! Make sure you are getting the most for your money and not blowing it on something that you won’t use. In the long run, you will be happy that you took the time to save.
Pay Off Your Card
I love putting purchases on my credit card because I get the points. It is great to see that my money actually goes somewhere. The one thing that I have found extremely helpful is to pay off my credit card as I spend. If my money sits in my checking account I see my balance and think I still have money to spend, but if I pay my credit card off as I go, I realize that I don’t actually have as much money as I would like. It makes me watch my spending and keep my debt down while earning great points.
There are some people that still don’t have credit cards that they earn points with and it makes me wonder why. Earning points is a great way to spend, especially if you are putting purchases on your credit card anyway. You might as well get the most out of your spending and either get cash back, merchandise, free flights…the list goes on. However, don’t let yourself get caught up in the points and remember that paying off your credit card is all part of the deal…otherwise you and just throwing the points away by spending extra money on your interest. Make sure to check out the Geezeo Marketplace for credit cards that will work great for you and recommendations from people who already use them.
Photo: Andrea
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