Using credit cards for their rewards is becoming more and more popular. And why wouldn’t it be? All you have to do is use your credit cards to pay for purchases like you normally would, except if you are using a rewards credit card then you can actually earn something back.
I have been able to get a few things paid for because of credit card rewards. I have earned over five round-trip flights, gift cards, cash, and more.
Here are my tips to use credit cards for their rewards program successfully:
Work on improving your credit score.
The best credit card rewards programs out there are usually only reserved for those with good or excellent credit scores.
If you want to get in on the best rewards credit cards, you are going to have to make sure that you have a high credit score, or you may just be denied altogether.
Look at the sign up bonus.
There are many different bonuses out there for credit cards. This is where you first find a credit card and sign up for it. In order to qualify for a sign up bonus, usually you have to spend a certain amount with a certain time frame.
This all varies from credit card to credit card, so you will need to look at the credit card’s bonus terms in order to figure this out. For example, a credit card may have a sign up bonus of $500. In order to receive that bonus, you may have to spend $3,000 in the first three months.
I could never spend $3,000 in the first three months though…
$3,000 might seem like a high number, but if you have monthly bills then it may not be that hard. All you have to do is put your normal spending on your rewards credit card, and it probably wouldn’t be that hard. Different “normal” expenses that you could put on your credit card include: food, utility bills, entertainment, clothing, gas, and so on.
Or, if you have a lot of big expenses coming up, you could put those on your rewards credit card as well. Large one-time expenses could include a wedding, home renovation, a vacation, and so on.
However, don’t spend extra money just so that you can reach the limit.
If you decide to put as many expenses as you can onto your credit cards so that you can get a sign up bonus, you should always be careful. Some find themselves putting extra on their credit cards because they think they won’t reach the limit.
This is not a good idea though. You shouldn’t go into debt and not be able to pay your monthly bill if you are trying to use credit cards to your advantage. Only put purchases on your credit card if you can truly afford it.
Do you use credit cards for their rewards?
