Sunday 24th of May 2020

Are You Charging Everything to Your Credit Card?

Imagine getting $500 toward that new HDTV you’ve been eyeing or not having to pay for groceries one month. With all the different reward programs out there, you don’t have to imagine these things. There are literally dozens of different ways you can earn rewards just for using your card. Each company has different programs and many people are finding ways to take advantage of them, sometimes getting over a thousand dollars in cash back over the course of a year. Here we’ll explore how you can get the best rewards from your cards and why you should do it in a financially responsible matter.

Getting the Best Rewards

  • First, review the cards you already have and find out if there’s any reward programs you might be missing out on. You can usually easily enroll in programs through the company’s website or over the phone.
  • Don’t fall for those cards or reward programs that charge you a yearly or monthly fee. While a $20 fee may not be a big deal if you end up getting hundreds in rewards, you can typically find a program without annual fees.
  • While you may be tempted to open up five different credit cards so you can get the most benefits possible, it’s probably not the wisest decision. Instead, focus on getting the most of your benefits from one or two cards.
  • Earning 1% cash back may have been acceptable when reward programs first started showing up, but you definitely be earning more than that now. Many companies offer over 2% for their cards

Don’t Chase Rewards

Of course, earning all of these great rewards comes with a catch - make that several catches. One of the major caveats among some credit cards is that they have a limit as to how much they’ll pay out, such as only $250 cash back per year. Another possible issue with chasing after credit card rewards is not being able to pay off your balance at the end of the month. With those high interest rates, it won’t take long for your balance to balloon and eventually get out of control. By maxing out your card you’ll lower your debt-to-credit ratio and possibly hurt your credit score. So by all means, go after your credit card rewards, but do it in a manner that’s financially responsible.