How to Earn Rewards Using Credit Cards
When using credit cards, you don’t just get a convenient payment mode. There are other benefits, including rewards, zero percent interest financing, and even free shipping depending on the kind of payments you make.
Rewards also vary depending on the card and the type of payment you are making. Some of the standard rewards you can get with credit cards include cash points, reward points, free travel, gift vouchers, and much more. So how do you earn these rewards? Here is how you can make and maximize your credit card rewards.
- Use the Right Card when Making Payments
When you use a reward cash card to make all your purchases, you get more rewards in return. You need to use the right card for the right purchases, which will increase your rewards. The professionals behind Square cash card explain that using a Blue Cash Card to purchase your groceries, gas, paying for streaming subscriptions, and transit will make you earn more rewards compared to using a Double Cash Card, which is meant for everything else. You need to use the right card for its intended purchase to achieve more with your credit card. If you have been using one card to make payments, it’s advisable to get another, which is suited for particular purchases.
- Earn the Welcome Bonus
Currently, the available credit cards do offer a welcome bonus when you open a new account. This welcome bonus opens ways in which you will be earning your rewards. For you to earn a bonus, most of these credit cards require you to spend at least $500 to $4000 in the first quarter for you to start earning bonuses. Bonuses are lucrative, and everyone will want to earn them. One thing you need to note, though, is that you shouldn’t spend your fortune for you to earn bonuses with a credit card. You can get a card that requires low spending for you to start earning such bonuses, after calculating the interest charged versus the value of the rewards you will be getting after using the card.
- Check on Limited Offers
Sometimes, card providers usually run offers that are time-limited. You need to be checking such requests since they might include getting more rewards for using your card. How do I know such offers exist? Most of the card providers will send you a marketing email or advertise the same in the mainstream media. You need to be checking for such adverts. Some providers will target specific products, such as purchasing fruits and groceries, while others will offer them time-limited. You should always try as much to take such offers to earn rewards into your card, which you can use later or as per its terms and conditions.
- Combine Points
You can accumulate rewards by combining points from different cards to have more points in one card, which you can use to claim more significant rewards. It is like pooling points from other cards into one card, aiming to get something valuable from them.
However, such a transfer is limited. You have to combine points from the same issuer or the same types of cards, depending on the terms and conditions of use. Some companies do not allow the transfer of points from one card to another. You need to check on the type of card you are using and the terms necessary for combining such points.
- Pay your Bills in Full
Timely payment allows you to have a good credit score on your card, which at times, matters when getting rewards into it. Bill payments matter a lot on any card. They enable you to earn positive ratings, which help you get the most credit card rewards. Credit card interest rates are always on double digits for individuals who don’t know, while rewards rates come on single digits. Having a balance may cancel your reward earnings. It would help if you tried as much to pay your bills on time and offset them in full to avoid balances—a balance, whether a coin or few dollars, will make you lose your credit card rewards.
After getting your rewards, you can use them in many ways, including shopping, traveling, getting zero percent interest financing, free shipping of your purchases, and many more depending on your card. One thing you need to note is how to redeem your rewards. The worst ways you can redeem your credit card rewards are by redeeming your points for merchandise, getting your statement on the travel card, and paying with points. You will encounter inconveniences since you might end up getting less value for the rewards. Make use of the tips appropriately, as recommended.
