Rewards credit cards are one of the most convenient and rewarding ways to pay for just about anything that you need. Gone are the days where you are forced to choose from credit cards that only benefit the issuing company; now you have a huge variety of credit issuing companies to choose from, and they’re all competing for your business.
Using a rewards credit account gives you the upper hand – if you have the discipline to spend only what you have. When you buy something with a rewards credit card, you’ll actually gain more from spending than the actual merchandise or service that you paid for.
Some of the most common rewards are:
points that can be redeemed for airline miles or merchandise
gasoline “credits”
cash back at a percentage determined by your card issuer
By now, you’re probably eager to sign up for a rewards credit card, but you must be cautious about the accounts you choose to open. Making rash decisions is never a smart move, as it could leave you with crappy rewards and more fees than you can shake a stick at!
So, before you sign up for a card that offers rewards, make sure you’ll be earning rewards that you will actually use. Naturally, cash back is one of the most attractive options, but you might also benefit from airline miles, gas, or points that can be redeemed for merchandise at your favorite stores and restaurants.
Also read the fine print on your application, so you know exactly what you’re getting into. Neglecting to do so is like digging your own grave.
Make sure the APR is acceptable to you, and that you agree with any possible fees that might be charged to you. Be on the lookout for “suspicious” wording that might indicate hidden fees. Discuss any questions you have with a customer service representative before committing to a contract.
To make the most of your rewards card, remember never to spend what you don’t have. If you don’t have the money to pay off your charges immediately, the value of your rewards will essentially cancel itself out when you take into account the interest rates applied to your balance.
One of the best and safest ways to earn with your rewards card is to pay your utility bills with them. Bills can often amount to hundreds or even thousands of dollars each month. This can earn you a significant amount of rewards over the course of a year. Hey, you have to pay that darn electric bill anyway – you might as well earn something while you’re at it!
Using a good rewards credit card can result in you actually making money if you know how to spend wisely. Not only do you have a convenient and practical way to pay for the things you really need, you also have a way to earn cool stuff at the same time!