Getting The Most Benefit From Your Rewards Credit Card By: Michael D. Strauss

Rewards credit cards are potentially a very valuable addition to your
personal finance spending habits, allowing you as they do the chance
to build up points as you use the card, which can eventually be
redeemed against the cost of a range of goods or services.

Make no mistake though, these cards exist only to make the issuers
money, and if you don't utilize them carefully then you could easily
end up being worse off. The standard rates of rewards cards are
generally higher than those of ordinary cards, to cover the costs of
running the reward scheme, and so if you're not getting the most out
of the bonuses on offer then you're probably better off with a cheaper
card without the rewards feature.

As with all credit cards, the most important thing you can do is to
pay off your balance in full each and every month. Any rewards points
you build up will be totally dwarfed by interest charges if you allow
a balance to build up - this is, after all, how the card issuers plan
to make money from you. By paying your bill on time each month, you'll
avoid interest charges and other fees, allowing the value of the
rewards points to shine.

Secondly, make sure that you're aware of any special deals between
your card issuer and retailers or service providers - in many cases
you can earn double or triple points by choosing one retailer over
another, and if price differences aren't an issue then choosing your
shopping outlet wisely can help your points build up much more
quickly.

In these days of online account operation for all sorts of services,
it's easier than ever to pay energy bills and the like with your
credit card. These kinds of bills are often a major part of a
household budget, so why not use them to earn rewards? Make sure
though that you don't have to pay a credit card surcharge, or the
benefits could well be outweighed by the extra cost over paying by
cash or cheque.

It also makes sense to shift as much of your everyday spending as
possible onto your card, so that your points tally will grow at an
even greater rate. Groceries, vehicle fuel, subscriptions, car parking
costs - any time that you can choose plastic over cash, you should do
it. Just ensure that you don't allow your card balance to slip into
the red from month to month, as paying interest on essential everyday
expenses is not a wise move for your budget.

Another way to ramp up your points total is to make use of bonus
points if available. Many card issuers offer special promotions at
certain times of the year, during which you'll earn more points than
usual. If your card issuer does this, then try and save any major
purchases until one of these bonus periods.

Finally, one easy way to increase your points earning potential is to
take advantage of the additional card facility. If your spouse,
partner, or other close person that you can trust also uses a card
linked to your account, then you'll accrue points via their spending
too - just be sure they pay their part of the bill when the statement
arrives!

So as we can see, there's more to rewards cards than just spending as
normal. By taking advantage of the tips we've covered, you can ensure
that your benefits from using a reward card will be maximized while
the card issuer's profits at your expense will be eliminated!

Article Source: Free Articles - http://www.articlesworldonline.com

Michael writes for the credit cards comparison site Card Sense, where
you can easily compare rewards credit cards, balance transfer deals,
cash back cards and more.