As technology advances, everything else changes too. Nowadays, an increasing number of people are making good use of the convenience offered by credit cards. However, some still hesitate to use them probably because they lack information on maximizing their services and benefits.
Credit cards allow people to purchase what they want or need without shelling out cash right on the spot. They can collect their spending altogether until they’re all billed at a specific time of the month. “Cash back credit cards are a great option if you can pay your bill off every month,” says Scott Langdon, analyst for CompareCredit.com. Aside from this obvious advantage, more perks, rewards, gifts, promotions, minimal fees, and financial benefits come with it.
Here are some clever ways for you to maximize the use of your credit card:
- Realize And Assess Your Spending Habits
First, you need to identify your spending habits before choosing the perfect credit card to apply for. To maximize your earnings, you can match your spending habits to what the credit card offers. Most financial institutions specifically design a credit card that targets different purchasing and spending behaviors of consumers.
A credit card that offers additional points or cashback on travel expenses might be a good choice if you love traveling and staycationing. If you drive and use your car a lot, there’s also a card that maximizes earnings for gas rewards. If you tend to shop online more often, some cards offer more points for this category. Look at your financial budgeting app and track down which expenses you incur most. The key is to assess which aspects of your life you tend to spend more on and apply for a card that matches your financial goals.
- Take Advantage Of The Welcome Bonus
When a cardholder meets specific requirements after opening a card, they can avail of a certain welcome bonus. This is a strategy for credit card companies to encourage you to use your card and help you earn rewards right away. To qualify for the sign-up bonus, cardholders usually need to use their card for a specific amount of purchases within a designated time frame after they open.
If you want to qualify for the bonus, read the terms carefully and plan out your spending so you can avail of this amount. Think of what expenses you need for the month and use the card instead of paying them in cash. If you’ve been planning to make any significant purchases, now is a great time to do so. Although welcome bonuses are tempting and ideal, keep in mind to spend on things you only need or plan to have.
- Redeem Reward Points With Gift Cards
You can use your credit card rewards to buy gift cards. This is a convenient and valuable gift. When you redeem your points for a gift card from a retail store, some credit card companies even give out more value and perks. Check out your favorite retail store’s terms and conditions regarding the redemption of gift cards through credit card rewards.
Gift cards can sometimes be redeemed with fewer points than rewards items with higher points requirements. Accumulate all your points and use them in receiving gift cards instead of using them elsewhere, so you can maximize more value even with fewer points.
- Learn About Your Credit Card’s Overall Perks And Offerings
Many rewards credit cards come with more benefits than just earning points, miles, and cash back. Before deciding what credit card to use, it’s wise to read and understand their overall perks and offerings. For instance, some credit card allows you to gain insurance coverage for luggage loss. Some also allow you to stay and chill in the airport lounge. It’s all a matter of what gimmicks and motivational strategies credit card companies pursue to earn more users.
Many credit card companies partner with retail stores and shopping mall establishments wherein you can purchase high-priced stuff and allow you to pay in installment for some time with no interest fees.
The earnings potential of rewards credit cards understandably attracts a lot of attention from potential cardholders, but it’s worth considering other related perks and benefits when selecting a card. In many cases, you can save costs by taking advantage of these unconventional benefits too.
- Stay On The Lookout For Limited-Time Offerings
There are often limited-time offers that credit card companies run, which can offer higher rewards rates. To keep updated with such events, it’s best to subscribe to their email list and receive news and promotion announcements. Special holidays, big sales, and anniversary promotions are some of the things these card companies would offer. There may even be targeted offers that give you the chance to earn extra rewards for a limited period.
Some credit card companies offer their customers bonuses through their websites, so it’s also a great idea to check their sites from time to time. Users who shop through their online rewards platform may receive double or triple cash back. Take advantage of these short-period offers to optimize rewards.
- Use Your Card To Enjoy Discounts From Air Fare And Hotels
Travel rewards can save you hundreds of dollars on airfares and hotel expenses if you redeem your points. You may have to save up a lot of points to qualify for travel rewards. But considering how much savings you can have, it’s worth the time and effort in accumulating these travel reward points.
The only downside for this reward is that sometimes, the travel credit card companies would invalidate specific dates for rewards redemption. It could be the peak season or some special holidays where flights and hotel accommodations are fully booked often. However, if you want to travel other times, then these rewards are still beneficial for you.
- Use Your Card For Everyday Necessities
Your everyday purchases can earn you many points or miles if you use your credit card instead of cash. So, this is another helpful tip to maximize the use of your credit card. You can maximize your rewards and get your spending under control by using your credit card for everyday expenses. And of course, another advantage is you can save your cash for other things. Hence, if you purchase your necessities in establishments that accept credit cards, then use them.
Conclusion
When used responsibly and not borrowed beyond your means, credit cards offer a lot of perks and excellent benefits. A credit card offers rewards on purchases and comes with perks for shopping, traveling, and more. With the tips mentioned in this article, you can maximize the use of your credit card and enjoy its benefits.