MAKING THE MOST OUT OF CREDIT CARD REWARDS
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Recently I had the privilege of redeeming my credit card points which I had accumulated over a period of a year for retail vouchers. I have two credit cards, one of which I use rarely. I was able to redeem the points accumulated for a $30 voucher from Charles and Keith (after much contemplation on making a choice). With the other card, I managed to accumulate enough points to redeem a Robinson’s voucher worth $120. So I got two quality bags which I needed for work from each of the two stores. In all I paid only $30 for the first bag and $19 for the second to make up the difference. I ended up saving by paying a small amount for something I really needed. So how did I manage to turn the use of the card to my advantage?
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The answer lies in using the card frequently and wisely. Did you hear it wrong? No. Frequently means making essential purchases from stores that also offer rebates as well as making necessary online purchases. For example, if I need bed linen or toiletries, I will head to the department store that offers rebates with credit cards. This is useful when purchases tie in with store sales. My advice is to budget wisely and plan on paying your balance off in full each month and you won’t have to worry about losing the value of your cash back to interest. Avoid making small purchases with credit cards. Â
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Don’t limit your point potential by spreading spending across multiple cards. By using only one credit card, your reward points will rack up much faster than by splitting your credit card rewards over 2 or more credit cards. Â
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Look for alliances to redeem rewards with other airlines, hotels, rental car companies, and retailers. Official partners offer more value per point.
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Keep track of your points and expirations date. Don‘t let rewards expire. Account activity may be as simple as visiting your credit card’s reward redemption website to exchange points for vouchers that fit your lifestyle. There is a range to choose from: dining, shopping, spa or facial and resort/hotel accommodation. Choose a reward that you really need and which you find most valuable.
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But don’t cash in too soon. Take advantage of bigger rewards such a pricier perk by redeeming more points per transaction. I redeem my rewards in the same month of the expiration date to chalk up more points. Â
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How do you decide on which credit card to use more frequently?
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Review all of your credit cards (it will be advisable to bring down the number to just two, one for emergency and the other for necessary purchases) and determine which reward is the most valuable to you. Would you rather have cash back, rebates, point accumulation or save for a free airline flight, or perhaps a free hotel night. The key is to pick one which you can make frequent purchases on.
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When used wisely and prudently, rebate credit cards that allow you to accumulate points at the same time constitute a wonderful way to manage your budget, maximize your savings, and make the most of the money you work so hard to earn. No matter which one you decide fits most comfortably into your life, it’s easy to make the most of the attached benefits when you know how.Â
March 24th, 2010
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March 26th, 2010
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May 25th, 2010
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