Credit cards are a great way to earn free rewards, like travel miles and cashback. They can even help you save on the cost of your next vacation! To help you get started collecting credit card rewards, we put together four tips to maximize your points-earning potential and help ensure you have enough mileage for the trip of your dreams—or at least one that won’t break the bank. The most important thing to remember when using your credit card for travel rewards is never carrying a balance. The interest you will pay on a credit card balance can easily outweigh any benefits or perks that come with the card. Paying off your credit card in full every month ensures that you earn as many points as possible. When choosing a new credit card, it’s best to research the different reward options so you can make the best choice for yourself.
1. Don’t Forget About Your Essential Purchases
Just because you’ve paid your credit card bill on time doesn’t mean you shouldn’t use your card for everyday purchases, like buying groceries and gas. Even on a $100 grocery run or a $100 gas bill, your points will still add up. You can earn up to 5% cashback on these regular purchases with some cards!
2. Add the Right Cards to Your Wallet
When your goal is to earn rewards quickly and often, having the right credit cards will help you get there. If the thought of paying for an entire vacation just by using a credit card is appealing, make sure you have some cashback cards in your wallet. If you’re mostly looking for ways to save on everyday expenses, you might consider getting a card that automatically tracks every purchase.
3. Keep Track of Your Points
It’s easy to lose track of your reward points, especially if you don’t pay attention to your statement. You might even miss out on points you could’ve earned by paying your credit card bill on time! As a general rule, it’s a good idea to log in and check your account online at least once per month. Keep tabs on the number of points you get for each purchase.
4. Don’t Ignore the Other Cards in Your Wallet
Most credit cards have bonuses, too. Some of these bonuses can be pretty generous, and they’re available to you if you see them in your rewards statement before you close out your account. You might not be able to take full advantage of the bonus on every card, but it’s good to keep track of when different cards offer extra rewards.
The best part about ensuring you’re always maximizing your credit card rewards is that the process is straightforward. As long as you make smart choices every time you use your card, it doesn’t take much effort to reap a healthy reward for things you would’ve purchased anyway! The credit card rewards program is a gift to consumers, but only when you see it as a gift. Too often, people view it as a cost of using plastic and are upset with themselves after they pay a fee or get less value than they should have in return. The benefits of credit card rewards programs come when you use your cards strategically to save money on everyday purchases and still get the reward back for your loyalty.