5 Tips to Maximize Your Credit Card Rewards Program

Maintaining multiple credit cards is no mean feat, yet there are people who not only manage this task well, but also succeed in reaping substantial benefits through cards rewards programs! You can manage this incredible feat too. All you need to do is follow the steps below.

1. Pick the Right Rewards Program

In order to get maximum benefits, you need to choose a card that is a good match for your spending habits. For example, if you are someone who doesn’t travel much, a travel rewards card will not benefit you. Instead, a card that offers 5% cash back at places you frequently shop may make more sense. In order to decide which card is best for you, go to various card issuers’ websites and familiarize yourself with details of each of the programs offered before making your selection.

2. Spend Only as Much as You Can Pay Off

The lure of earning rewards can tempt you into spending recklessly; however, this is something that you should avoid. Purchase only those items that you need and spend only as much as you can afford to pay off every month. High interest charges will dwarf any rewards you might hope to earn.

3. Monitor Your Points

It is quite easy to lose track of how many points you have earned on your credit card purchases, especially if you own more than one credit card. Make sure that you have a system in place that lets you track how many rewards you have accumulated, and when they are scheduled to expire. You can use online rewards tracking websites or just set up your own spreadsheet for this purpose. This is especially true for cards that provide cash back, but have a cap. Once you hit their cap, you may want to start using a different card until the term of the cap expires.

4. Review Your Cards Periodically

Review your cards periodically to ensure that the program is a good option for you and your purchasing style. It may happen that a card that was a great deal when you got it is not the best one for you now. Another card in your wallet may be a better fit, or you may want to apply for a card which has a more lucrative program.

5. Take Advantage of Bonus Rewards

Many cards offer bonus rewards in rotating categories. You should take advantage of these when it makes sense and not leave any benefits on the table. For example, Chase Freedom, a popular rewards card, offers 5% cash back in rotating categories that change each quarter, while other cards offer online deals or “shopping malls” where you can earn even greater rewards. If you have more than one rewards credit card, you should utilize the credit card rewards calendar for each card so that you can benefit from cash back throughout the year from each card in different categories.

Many reward credit cards additionally charge annual fees. Before signing up for one of these, do the math to ensure that you will be spending enough to earn rewards on that card that will more than make up for that annual fee. Before you apply for any card, you must also ensure that your credit is in tip-top shape. If you don’t qualify for a rewards card that you apply for due to a poor credit score, you may end up damaging you score further.

You can easily succeed in keeping more cash in your pocket through savvy management of credit card rewards. It does require a little bit of effort and alertness on your part.

Fund&Grow helps real estate investors and entrepreneurs get the capital they need to run their businesses. If you have credit needs in the range of $50,000 to $250,000, please give us a call at (800) 996-0270 or email us.