Almost
everyone has a credit card with a rewards program, but are you getting the most
credit card rewards that are available? Are you truly maximizing the rewards your
card has to offer? I'm going to give you a few tips on how you can increase the
rewards you receive from your credit cards reward program.
First let's
get one thing straight. If you carry a balance on your card you are defeating
the purpose. You will pay far more in interest than you will ever get out of
the rewards program. Let me illustrate. Say you have a balance of $8,000. I
just picked out a number. Most credit card companies charge from 12 to 18
percent interest. We'll just use 15% for the sake of argument. In a month you
would pay $100 in interest. Over the year you would pay about $1,200. In order
to earn $100 in rewards points you usually have to spend about $10,000 because
the average program pays about 1% in rewards. So remember first only use a card
that you can pay off the balance each month. This is critical.
Once you
have your credit card ready you need to organize. Yeah, I know, it sounds like
a little overboard for a small reward each year, but if you do it right it
could end up being a large reward or bonus to you for Christmas. What you need
to do is jot down all of the things you spend money on each month, including
the bills. This is one area that takes a little more work but can really
increase the rewards you receive.
After you
have a list, look at all of the things you normally pay cash for or use your
debit card. These could be things like buying groceries, paying for gas, paying
for school lunch for the kids and many others. These are the first things you
need to change. It adds up to hundreds of dollars a month and equals lots of
points. By the end of the year this could be thousands of extra points.
Next go
down your list again. Look at al of your monthly bills. There is the phone,
cable, water, gas, electricity, auto insurance, health insurance, cell phone.
Remember, these should not be loans you are paying down, just monthly bills.
Most of the ones I listed here can be set up to be charged to your credit card
with rewards each month. This adds up fast, especially during the summer when
the air conditioner is running a lot.
A third tip
is to use your credit card for large purchases, even if you have the cash
saved. For example if you are buying new furniture. This could cost thousands
of dollars. If you already have the money, why not put it on your card and then
immediately pay off the balance. This is key. Don't let the card cycle and
accrue interest, it will cost you more than the reward you get. Remember be
creative and always offer to use your card first. Sometimes you can even put
the down payment for your new car or pool on your rewards card.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น