Excellent Tips on Making More From Credit Reward Programs

by Josh Biggs in Finance on 29th October 2019

There are quite a few people who tend to struggle with their finances. However, will the information available online it seems like more and more individuals are looking to get better at money management. Moreover, you have a lot of sources on the internet that really help out. But that is not all.

These days, everyone is more or less doing all their shopping on the internet, or whenever they are in store, it is usually a credit card you see instead of cash. 

Some might not know this, but there are quite a few credit card reward programs that allow you to take advantage of improving finances. If you want to find out about them more, make sure to continue reading.

Compare Programs

After a little bit of research, you might start feeling that there are quite a lot of different choices available. Getting every single credit card available is out of the question which means that you will need to choose only that which seems the best for you.

There is a great Westpac guide on comparing reward credit cards which will give you a much better understanding of how to do that. 

Reward Should Align with Your Interests

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As you can expect, it is not just the number of different credit cards available. There are a plethora of different reward programs as well. In general, it mostly follows the formula of point accumulation, and then you can exchange these points for various rewards, like merchandise, store credit, or even cashback. 

It makes sense to align the program with something you like, right? It would make no sense to work towards something that you do not really need only to get disappointed later. 

The best choice would certainly have to be getting the cashback. This is especially true for those who are struggling financially and could use the extra money for grocery shopping or something similar. 

The bottom line is that you should avoid a program that is not going to profit you. And keep in mind that some programs encourage you to spend more money. It is a marketing technique and plenty of people get fooled by it.

Compare the Available Programs

According to some experts who have worked in credit card marketing, quite a few people tend to make a mistake of purchasing the product on impulse more than anything else. This sort of approach is terrible with pretty much everything else, not just credit cards.

Instead, you should take some time and compare all the available programs that you are interested in, as well as what you have at the moment. 

It is also worth mentioning that if you are looking to reduce your expenses on traveling, most such programs have annual fees. Thus, if you are not making enough progress with points, it is possible that you will be losing in the long run.

Get Rid of Mediocrity

Once you start to get more experience with this, you will start to realize that carrying a bunch of credit cards with you all the time is not the healthiest thing. Sure, it is the future payment method, but that does not mean you should have as many as you can.

There are bound to be some cards that are simply not worth the hassle. Annual fees and mediocre rewards are simply not worth all the hassle, so you should throw those away. 

Spend Money Using a Single Card

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When you are done with choosing what you feel is the best available card, be sure to do most of your purchasing using a single card. It will help with maximizing the rewards. After all, what is the point of having a card with rewards if you are not using it, right? Obviously, you should not spend money just for the sake of getting something in return, but if there is a need to spend money, do that with the best that is available.

Expiry Dates

You should not expect reward points to be available forever. Typically, they tend to expire in 12 to 18 months with some exceptions of up to 24 months. Some companies allow you to buy the points back, but there is nothing better than using them before they disappear.

Changes of Terms

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Those who issue credit cards are notorious for changing terms of services. These things happen when you least expect them to and it can become pretty problematic. While they have an obligation to inform you via mail, it usually arrives quite late thanks to the snail mail. You should keep track of these things yourself so as not to miss something crucial.

In a word, if you are looking to improve your financial situation, then there are plenty of merits to learn more about the credit card award programs. Even if you have not had an opportunity to try it, things should become clearer after reading this article.

Categories: Finance