May30
Four Ways to Make a Rewards Credit Card Work for You
We love rewards credit cards because they reward us for shopping! Rewards credit cards are commonly offered by credit card companies these days and widely used by consumers across the U.S. However attractive a rewards credit card may seem, though, if you don’t adhere to the card’s terms and conditions, your rewards credit card may not be so rewarding after all.
Here are the top four ways to make sure your rewards credit card is working for you:
- Apply for a card that best fits your spending habits – Rewards credit cards are a dime a dozen these days, so finding one that best suits you and your spending habits may take some time. However, your persistence will pay off in the form of rewards, so do yourself a favor and research the newest rewards credit cards until you find one that is most in line with how you shop, when you shop and where you shop.
- Pay close attention to the rewards schedule – Most rewards credit cards have changing rewards schedules, meaning that you earn rewards in a variety of ways each month. For example, some cash back rewards feature rolling rewards schedules that allow you to earn more cash back rewards if you shop at certain retailers at certain times. Take the time to review the rewards schedule for your credit card, and the terms and conditions associated with earning those rewards, and always pay attention to any correspondence your credit card company sends you, as this will likely detail changes to your rewards schedule.
- Charge! – The only way you will make your rewards credit card work for you in terms of rewards is if you spend on the card.
- Pay off your balance each month- You can earn all the rewards you want, but if you fail to pay off your balance when your statement arrives each month, the finance charges you will pay on that balance will likely negate any rewards you earned throughout the month. In short, if you use a rewards credit card, pay off the balance each month. If you are the type of spender who frequently carries a balance over each month, then it makes more sense to find a credit card with a low, fixed rate and skip a rewards credit card.
