Credit cards are a big industry. According to studies conducted in 2014, 89% of Canadian adults have at least one of the 72 million Visa and MasterCard Credit Cards in circulation. Credit cards are the method of payment of choice for overwhelming majority and this is largely due to the rewarding rewards that many of these cards offer.
These rewards – points, cash back, or unique sign-up bonuses – can amount to a significant amount of free money to be earned for making regular expenses. Here’s how you take advantage of your credit card rewards:
Choose a map that fits your lifestyle.
Credit card rewards generally fall into three categories: travel, cash back and store credit. A travel card would be of no help if you do not travel a lot. Examine your spending habits and retailer preferences to see which program aligns with your goals. Use the card of your choice to pay for everything to maximize your benefits.
Doubling on the points
If the credit card of your choice is linked to a specific loyalty program, use your loyalty card every time you make a purchase. Credit cards are designed to be used with affiliated credit cards so you can earn rewards faster. Forgetting loyalty cards at home means that you lose points when you pay at the cashier.
Buy gift cards to reach spending bonuses
Most credit cards offer lucrative signup bonuses that are worth several hundred dollars once you exceed your minimum expenses for a specific period, typically 90 days. Buying gift cards from a specific retailer can help achieve these minimums or some types of payment are not acceptable.
Remember the other benefits
Take full advantage of the features of your credit card to make sure you do not spend money when it’s not needed. With price protection, you can reconcile the difference with your credit card company for big purchases like the TV you just bought for $ 999 to $ 1200. If you pay for your trip using a credit card, you may not need to pay for additional travel or medical insurance. Be sure to check the fine print to understand all the limitations so that it does not have any surprises.
The last word
Credit card rewards certainly have their edge but come with a price. Cards that offer rewards have an annual fee. If the rewards translate to 2% of total expenses, you should spend $ 5000 to cover $ 100 of annual fees before the rewards start to come in. If it’s not worth it, cancel the card during the first year to avoid paying the fee. Failure to pay the balance in full at the end of each month may also incur late fees, loss of rewards and interest charges as high as 30%. No reward is worth your debt.
Used properly, credit card rewards are a powerful tool in your financial toolbox. Taking a moment to explore the possibilities can translate to more money in your pocket that you can enjoy. Check the comparator of credit card rewards on Wackford Squeers to find which one suits your needs and earn rewards today!