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My credit cards offer me one of the best avenues to free money. All I have to do is shop around for the best credit card rewards program. Then by paying off my credit card balance before the end of the month, I avoid paying interest on my purchases. Though a little time consuming, the process of shopping with credit card rewards in mind is well worth it. Here's how I make the most of the different rewards programs offered by my cards.
Looking for the Best Rate of Return
Most of my credit cards offer a standard 1% rewards program as their baseline. But they also offer 3% or even 5% on special items. For example my gas station card rewards me 5% for fueling at their station. In addition, some cards offer up to 5% cash back on special occasions, such as all summer long or on holidays if you just sign up for free.
To make the most of my credit card rewards I shy away from picking a long term favorite. Instead, I stay on top of promotions and tailor my credit card use to the best deal of the moment.
Turning Points into Gift Cards
All my credit cards offer some kind of gift card program. But not all programs are alike. For example, one of my cards has only fifteen participating stores; while another has over a hundred. In addition, some of my cards require a minimum of 10,000 points before I can begin cashing the points for rewards.
Since I like to use gift cards during the holidays or on birthdays, I shop the gift card programs in advance. I look for participating stores that will suit my needs. And I look for small gift cards, such as $25 for 2500 points.
Turning Points into Minimum Payments
One of my cards offers an excellent cash back program instead of rewards points. Once I amass 2500 points I can cash them out for $30. This works well for me because I get a higher rate of exchange than the usual 1% associated with this card's rewards. Furthermore, I use this money to pay my minimum payment, and so buy myself one month's payment holiday.
Turning Points into Airfare
My grandmother likes to take an overseas holiday once a year. To help her cut her travel costs, I searched for a credit card with a frequent flyer rewards program. With a rate of 3% return, my grandmother saves up her points all year long. Then she gets her European roundtrip tickets for free, and once she even got a discount on her hotel stay.
Finding Ways to Gather Up More Points
Credit cards have widened their rewards programs so considerably that I can now pay for everything with a credit card and gather up points. I, therefore, auto pay my utilities with my credit card. I shop for groceries and fuel with another credit card. And I make all my online and retail purchases with a card as well. This approach has more than quadrupled my rewards points.
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