Maximize Your Credit Card Reward Programs

Lets Face It. Credit Cards Are The Lifeblood Of American Personal Finance!

Mastering how to maximize your credit card reward programs can help you earn real cash and great benefits.

Using your credit cards wisely will allow you to earn rewards & benefits on money you would be spending anyways.

Also, there are great ways to rack up points for flights and hotels thru your credit card by maximizing travel rewards. Personally, we have taken countless free flights as a family, stayed at great hotels for weekend getaway and have used credit card rewards for family vacations.  The last two years we have earned companion cards from Southwest Airlines and stayed at fabulous Marriott properties by being smart about our how we use our credit cards. Below are a few things to think about as you look to maximize these programs.

Tip 1: Choose A Rewards Program That Matches Your Lifestyle.

Pick a credit card reward program that matches your lifestyle.  A recent report estimated that 20% of people are using a card that doesn’t match their spending patterns. We have experimented with all types of cards – cards that offer flat rate cash back, cards that offer points you can redeem for different types of merchandise and others that are specific to certain types of rewards, such as airlines. Here is a site that gives a good overview on various options. We are a family that likes to travel.  Today, we have consolidated everything with our Southwest Premier Rapid Rewards and our Marriott Rewards. These are both highly rated cards and have great benefits, but it required a consolidation from 4 to 2 to see valuable benefits. Choose wisely and take time to review what is available and what will work for you. Maximize your credit card reward programs!

Tip 2: Use Your Card Responsibly

Credit card reward programs can be fantastic, they can also wreak havoc on you financially if you are irresponsible or don’t manage them closely. The average credit card debit for U.S. households is $15,654 according to a 2017 survey shared by Nerdwallet. You shouldn’t carry a balance over from month to month. Any time you carry a balance, you are pretty much cancelling out any value or benefits the card provides. Start small, use it for ongoing recurring expenses or money you would spend anyway. I would recommend you use bill pay and regularly monitor your balance. Build good habits and expand from there. Maximize your credit card reward programs!

Tip 3: Review Your Rewards Program. Read The Fine Print

As I shared above, we have shifted our approach over the last several years. As our lives have changed, so has our approach. Also, we do regularly shop other rewards programs to see what has the best value (e.g. not all airlines rewards programs are created equal) and fits with our lifestyle.  There are varying types of credit card reward programs and they differ greatly based on your want to accomplish – 0% APR, cash back, balance transfer. They even have cards for students and small business. As an example, for those with looking to reduce their credit card debt, there are several balance transfer cards that offer 0% promotion rates, typically 12 to 18 months.  This can be a great start to tackling your credit card debt. Maximize your credit card reward programs!

Tip 4: Don’t Miss Out On Bonus Opportunities

Look for bonus opportunities to boost your rewards earning potential.  Most rewards programs will offer ongoing promotions that you can take advantage to boost your rewards.  For instance, you will see cash back rewards programs offer bonus rewards at different types of the year or for specific categories (gas, hotels, restaurants, etc.) Also, watch for annual rewards. The last two years we have been at the end of the year needing a few thousand points to earn bonus rewards. In this case it was a companion pass from Southwest Airlines. While it meant we had to spend a few more dollars at the end of the year, it will be a great benefit for us to have for the coming year. It was well worth the price. Maximize your credit card reward programs!

Remember that life is a game never won or lost, only played.