Swiping to Save: Using Credit Cards For More

Being rewarded for spending money almost sounds too good to be true. But nowadays, credit cards offer much more than a line of credit, convenience, and purchase protection, but also offer you rewards and savings to keep more money in your wallet. How so, you ask? Let’s talk about how you could use your credit cards for more:

Choose the Right Credit Card

Each credit card will offer a different category of a reward, whether that’s rewards for travel, entertainment, or dining. When choosing a credit card, it is important to look for the card that offers rewards that will be best aligned to your lifestyle and spending habits. So, if you're a frequent traveler, a travel rewards card would be a great choice and right up your alley. But, if you spend more on dining, a card that offers cash back on dining purchases would be a better choice.

Maximize your Rewards

Once you decide on the perfect card, you want to use that card for practically everything that will earn you substantial amounts of cash back. For example, if your credit card is offering 5% cash back on groceries, you should 100% use that card to make your grocery trips and not another credit card or cash. It’s not everyday that you’re rewarded for spending money, so take advantage of that.

Maximize the Value of your Rewards When Redeeming

When it is time to redeem your credit card rewards, you can typically use it on statement credits, cash back, or use it as points on an external site such as an airline transfer partner or an e-commerce site like Amazon. It’s imperative to choose the option that will grant you the most value. The redemption methods may value your points differently for each circumstance, as you may get more bang for your buck using it for travel as opposed to using it as a statement credit.

Save Your Rewards

When you earn cash back or points, consider saving your rewards for a bigger purchase. For example, if you are a frequent traveler, let your rewards stack up and consider using it as a vacation fund. Another good idea is to save your rewards for a rainy day, don’t necessarily use it as a primary emergency fund but having that extra cushion would be beneficial.

Take Advantage of All your Credit Card Benefits

Credit cards offer plenty of other benefits that you may not realize. Some credit cards offer extended warranties on purchases, purchase protection to cover loss or theft, rental car insurance, and travel insurance. By taking advantage of all your card has to offer, you will ultimately save more.

Credit card rewards are almost like the gift that keeps on giving. If you use credit cards correctly by maximizing your rewards as well as the value of those rewards when redeeming, you’ll essentially keep more money in your pockets. It’s important to still use your cards responsibly and not overspend to earn rewards. Remember to pay your balance in full each month to avoid interest charges or debt. Ultimately, using credit cards for rewards can be very valuable, provided you choose the right card and use it responsibly.