The biggest mistake consumers make with their rewards card is that most select the first one offered to them. This is far from wise because some rewards cards are a poor fit for a particular individual. If you don’t travel there isn’t much reason for you to select a card for airline miles or for hotel points. To get the most out of your credit card rewards consumers need to select cards that fits their lifestyle. Don’t select any credit card without shopping around because you will probably find a card better after adequate research. Pay attention to the interest rate charged because any open balance with rewards will offer no benefits to the individual. The points earned or cash back received evens out after the cardholder pays interest on the open balance. Try to spend on one or two reward cards only because having more cards reduces your potential to increase your rewards points. Using one or two rewards cards for all your spending is suggested because it will maximize the value of rewards points.
Every credit card with rewards has rules consumers need to pay attention to. Studies indicate Americans do not redeem a third of their rewards every year mainly because they do not realize the expiration dates. Close to one billion of reward points are unclaimed every year because of poor management. Every rewards card will have expiration dates that are subject to change. Most expire within 12 to 18 months of receiving points. Read the fine print because some cards require minimum monthly spending requirements. Others will penalize the consumer if they make late payments by taking back points earned for the month. Shoppers need to understand how they spend because there are instances where some wait to redeem their points for the higher value of a gift card but end up failing to gain enough points when the expiration date rolls around. Sometimes the lower value of a gift card is better because at least the consumer has something to show for their efforts. Others chase points and spend more than they normally would to receive more free items but it’s counterproductive.
Consumers may have the opportunity to double their rewards earning power usually at the end of quarters. The quarterly cash-back specials go along with the season and by paying attention to your credit card rewards website should provide crucial details on what you need to do. Always make large purchases with your rewards card instead of using cash because it will automatically increase your points significantly and some may even qualify for an extended warranty service. The most common use for credit card rewards is to partly pay for planned future vacations. Travel expenses add up and some use the rewards for perks such as free bag(s) check in, priority boarding, free night(s) for hotels and resorts, etc. To determine the best rewards cards for 2015 The Simple Dollar provided a comprehensive overview of competitive rewards cards available with their benefits and flaws. http://www.thesimpledollar.com/best-rewards-credit-cards/