Credit card companies often provide rewards to entise you to use their cards, and why not?
With all the reward offers these days, it wouldn’t be worth not using a credit card that doesn’t have a reward option. Rewards on credit cards allow you to earn benefits the more you use the card and over time they can quickly add up. For example, you can earn cash back, points to redeem on merchandise and gift cards or air miles to travel. If you are someone who rarely uses cash and is responsible with credit (meaning you pay off your balance every month) you definitely should use a rewards card.

When choosing a card, make sure to consider the “introductory offers” for new clients. This often gives you a bonus points balance to start with, and the opportunity to earn additional points once you start using the card.

A trick to using reward cards is to accumulate your points to redeem them for special events. Many people save up their points to get discounts on anticipated large grocery bills for their planned big-meal events or celebrations. You could even do all your Christmas shopping at the end of the year by redeeming your points for gift cards. Use the gift cards to purchase the items you want to give as gifts and spend no money. This is a great way to give yourself the added gift of no debt to pay in January !!

Look for loyalty cards everywhere. Why would you shop without getting a perk?

Christine’s Tip:

Buying everything on credit is a great way to rack up the points – but be careful.  You don’t want to ever carry a balance on your credit card month-over-month.  Carrying a balance and getting hit with high interest charges is no fun and definitely not a benefit to using a reward card.  Always check to make sure the rewards are right for you.  Do they have real value?  Do you have to spend too much to get a benefit?

Always do your homework before signing up for something new.

Remember, you should not be applying for new credit cards if you have a major credit application coming up (like a car loan or a new mortgage/loan).  And keep the credit cards to a minimum – you really should only have a maximum of 4 credit cards.  More credit cards could lower your overall credit rating score.