3 Tips for Maximizing Your Credit Card Rewards Today!

There are so many credit card options out there for consumers offering a wide variety of perks and rewards. It can be a little tricky finding the right card, but when you do, using that card for purchases can have a number of benefits. That's why I'm here to break down things you should be keeping in mind, so you can maximize everything your credit card has to offer.

Be Responsible

Keep in mind that the benefits of a credit card are only worth it if you are paying your bills on time and in full. If you carry over a balance that is accruing interest, the added cost of the interest will offset any potential rewards of paying with a credit card. Not paying your bills on time will also negatively impact your credit score. So always remember to not spend more than you have, even if your credit limit allows you to.

Similarly, pay attention to annual fees. If you are choosing a card that has an annual fee associated with it, really think about whether or not the rewards you will receive from using that card are more valuable than the annual fee you will need to pay to use it.

Sign-Up Bonuses

Most credit cards offer some form of sign-up bonus. Taking advantage of these can be beneficial financially by offering you additional cash back just for spending with your card shortly after opening it. For example, a card can have an offer along the lines of $100 in cash back rewards when you spend $500 in the first three months after opening the cards. These introductory offers vary by card so look for one that makes sense for you. In many cases, the spending threshold to receive a card's sign-up bonus is attainable just by making your usual purchases with the card. Don't spend beyond your means just to meet the bonus, as this would just offset any perks.

Choosing the Right Rewards

There is likely a credit card out there tailored to meet the needs of just about any consumer. Various credit cards offer additional points or cash back for spending on specific categories. Examples of categories you'll see cards offer additional points for spending on include, groceries, dining out, entertainment, travel, gas and more. Some cards give you the option to select which categories you earn additional points in while others rotate their categories by quarter. When you select a card, make sure you are picking one that offers the most points for what you are spending on frequently to maximize your benefits.

Trying to select the card that's right for you can be overwhelming. But by breaking down your spending habits, you'll be able to find a card that, when used responsibly, can offer major perks.

 
Erin Ellis
Accredited Financial Counselor ®
Philadelphia Federal Credit Union
eellis@PFCU.COM