One of the many reasons a person might apply for their own credit card is the chance to earn and use rewards points. Credit card companies incentivize frequent users of their cards with attractive benefits, such as cashback rewards, air travel miles, gift cards, or significant discounts from partner merchants.
But not everyone who owns a credit card may be getting the most bang for their buck out of its reward system. To truly maximize the value of your credit card’s rewards points, it would be good for you to be strategic in both your credit card selection and usage.
To that end, here are some tips to help you make the most out of your card’s benefits so that you can enjoy a full range of perks from it—and so that it can be a key tool for improving your financial health:
1) Select a Card That Has a Rewards Structure That Matches Your Spending Habits
Before settling on a credit card to use regularly for its rewards points, make sure that its rewards structure aligns with your spending habits. Different credit cards offer varying rewards rates on categories such as groceries, dining, travel, and gas. Knowing that, you’ll want to choose a card that provides higher rewards in the categories where you spend the most. Naturally, this will enable you to accumulate points quickly and more efficiently.
For instance, Filipinos who are Landers Superstore members will make great use of the Landers Cashback Everywhere Credit Card (LCECC). This Maya credit card will help members get the best deals with every use, and they can simply check the Maya app on their phones to see how much cashback value they’ve been able to accumulate on their cards—no guesswork needed. With every spend, LCECC holders will get up to 5% cashback on all Landers purchases, making shopping at the superstore more fulfilling. In addition, they’ll also receive 2% cashback on all dining spends and 1% cashback on eligible transactions. These advantages make the LCECC the go-to credit card for Landers members.
To identify the best card for your needs, analyze your spending patterns over the past few months and look for areas where you consistently spend the most money. This way, you can compare different credit cards to see which ones offer the best rewards for those categories. The goal is to choose a card that not only rewards you for your everyday spending but also aligns with your lifestyle and financial goals.
2) Take Advantage of Sign-Up and Referral Bonuses
Sign-up and referral bonuses are among the most lucrative opportunities to earn a substantial amount of rewards points in a short period. A number of credit card issuers offer generous sign-up bonuses to attract new customers, only requiring them to spend a certain amount within the first few months of opening the account.
These bonuses can range from a few thousand to tens of thousands of points, which will provide a significant boost to your rewards balance right from the start. Referral bonuses, on the other hand, will allow you to earn additional points by referring friends or family members to apply for the same credit card.
You can maximize the benefits of sign-up bonuses by planning your spending to meet the required threshold within the stipulated time frame. Consider timing your application around large or planned expenses to ensure that you can easily reach the spending requirement without straining your budget.
For referral bonuses, take advantage of your current network and share the benefits of the card with others who might be interested. Some credit cards even offer bonus points for each successful referral, adding to the overall value of the rewards you’ll accumulate.
3) Charge All Purchases to Your Credit Card
Use your credit card for all eligible purchases for a straightforward way to quickly accumulate rewards points. Upon charging everyday expenses such as groceries, utility bills, dining, and even small purchases to your credit card, you’ll be able to steadily build up your rewards balance. This approach ensures that you’re earning points on money you would be spending anyway, making it one of the most efficient ways to get the most value from your card.
All the same, don’t forget to be responsible about managing your credit. You’ll want to avoid getting into credit card debt just to earn points. Be sure to keep track of your expenses to steer clear of unnecessary purchases, and to stick to a particular budget for your credit card in order to prevent overspending.
4) Pay Off Your Credit Card Bills in Full
You should also aim to pay off your credit card bills in full each month, as early as you possibly can, to avoid interest charges and maintain the value of your rewards points. When you carry a balance on your credit card, the interest charges can quickly outweigh the benefits of the points you've earned, thus negating the value of your rewards and leading to unnecessary debt. Paying your balance in full ensures that the rewards you earn are truly beneficial and not diminished by interest payments.
Keep a close eye on your spending and set reminders to pay your bill before the due date. If your credit card issuer has an autopay option, enable it so that you pay the full statement balance automatically each month. This ensures that you never miss a payment and helps you maintain a good credit score.
When applying these strategies, keep in mind that it’s important to live within your means. Only charge what you can afford to pay off each month. Again, you’ll only be able to get the most mileage out of your rewards points if you’re smart about your credit in the first place.
5) Get Your Annual Credit Card Fee Waived
Many premium credit cards come with annual fees, which can sometimes be quite substantial. However, these fees often come with valuable perks and higher rewards rates.
One way to maximize the value of your credit card rewards is to get your annual fee waived. Some credit card issuers are willing to waive the fee for cardholders who consistently use their card and have a good payment history. Others will waive your annual membership fee if you meet their spending requirements. It never hurts to ask for a fee waiver, so don’t hesitate to contact your credit card issuer and inquire if there’s any way you can waive your credit card’s annual fee.
Overall, smart and responsible use of your credit card is the best way to accumulate rewards points that you’ll actually enjoy. Use these tips to adopt a smarter approach towards using your credit card, and benefit from the perks every time you swipe.
So nice ,thanks For sharing
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