How to make the most of credit card rewards
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Travel with Credit Cards » How to make the most of credit card rewards

How to make the most of credit card rewards


Updated: December 26, 2012

By
Add to Favorites:
Using credit card rewards to your benefit is an art. A lot of people clamor for credit cards that offer exceptional rewards. However, very few of them actually use the rewards to the fullest extent. This is where understanding what credit card rewards you need and what you don’t makes such a large difference. Here are some tips to understand and make the most out of credit card rewards. The 0% introductory interest Cardholders seldom use the 0% interest rate credit cards the way it should be. The 0% interest rate credit cards, especially those where you don’t have to pay interest even on the purchases you make month after month, are like interest free loans. In other words, if you get 0% interest rate for 12 months, instead of the usual 10 - 15%, on an outstanding balance of $1000 and an added $500 for purchases, you can save anywhere in the tune of $100 - $200 within a year’s time that can be used to repay the debt. However, most cardholders fail to check their expenses and repay their debt before the end of the introductory period. As a result they end up subjecting their outstanding debt to a high APR after the introductory period. The key is to draw up a minimum repayment plan, by which you can arrive at the amount you should repay every month to pay off the debt within the introductory period. Cash back rewards If you want to make the most out of the cash back offer, you will have to look for the credit card that offers unlimited cash back. A lot of credit cards slap limits and caps on the amount of cash back you can claim every month and every year. Such cards don’t benefit you a lot. Even 2% cash back will save you more than $200 a year if your monthly expenses are in the tune of $1000. If you are on vacation or on a shopping spree you might save even more. It is also important to note the cash back categories. You need to avail cash back if it is offered for buying from specific retail stores. Similarly, some cash back offers are available only on online purchases. Understanding these terms helps you make the most out of your rewards. Travel rewards Travel reward cards are for those who fly a lot. There could be an annual fee in excess of $100 on these cards. But, if you fly almost every alternate week, you will end up saving much more than that. Travel rewards include discounts on hotel stay with hospitality chains that have tie ups with your credit card brand. Similarly, there are discounts on air tickets, holiday packages and restaurant bills all of which sum up to quite a bit of saving. However, if you chase a travel reward card without being an enthusiastic traveler yourself, you might end up paying the high annual fee without availing any of the travel discounts on offer.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading