A credit card that offers a reward point scheme means that as
you use the card you accumulate a certain number of points which
can then be converted into a reward of your choice. It can be
air miles, gift vouchers, or a purchase of some kind. But to get
the most benefit out of a reward card you need to ensure that it
offers good value for your money. Did you know it could take
over five years and an expenditure of over US$ 5000 to get a
free ticket within the US.
Credit rewards are carrots dangled by credit card companies.
Before you are caught by the enticement evaluate your monthly
earnings, expenditure, as well as loans. Do not invite a
financial hurricane if you are not in a position to pay all your
bills every month. Interest rates on reward cards can be at
least 2-3% higher than other cards.
1. If you love travel then choose to treat reward points as
frequent flier miles. Check out the options your credit card
2. Many cards offer a cash rebate. The enticement carries hidden
a higher interest rate and if you are not in a position to
settle your bill immediately you will spend much more than you
earn on the rebate.
3. Use a card that offers a large number of options. Then you
have the luxury of selecting from a huge variety of merchandise.
4. Be clever use the reward points quickly before the card
company downgrades the points gathered by you.
5. Check whether your reward points can be set off against the
annual fees payable by you. If you have a no fee card then
choose rewards that are of use to you like gasoline, travel
assistance, retirement incentives, flier miles, or cash back. Do
considerable research and choose a scheme that works for you.
6. Use the card that offers you a reward steadily but be sure
you can settle the bills every month otherwise, the interest you
pay will negate the rewards earned.
7. Use the rewards card to pay for groceries and utilities every
month. It is a necessary expenditure which can earn valuable
8. If you have a mortgage payment to make and the bank accepts
credit cards then pay with you credit card and earn the reward
points. However the outstanding must be settled immediately.
9. Always be well informed check consumer reviews and with
about the cards you hold.
To reap good value out of a rewards program you will need to use
your credit card often. By using the card to pay for utilities,
groceries, prescriptions, mortgages, and more you can earn many
points perhaps even a 1000 dollars in a year. Handle your
finances wisely, never spend more than you can afford.