How to Maximize the use of Credit Card Rewards

There is growing trend on use of credit cards and one thing that has contributed to this phenomenon is the rewards programs being offered by the card issuers. In order to meet the increasing need for use of the cards, the issuers have developed different card reward programs that match different user needs. You will virtually get reward credit cards for different shopping and travel needs including hotel rooms, grocery store purchases, gasoline, restaurants, foods and cashrebate programs.

A new trend has been observed where some spenders have devised ways to use their purchasing power to gain on the perks offered by the cards. In a report by Wall Street Journal, homeowners planning to construct or remodel their homes are putting staggering amount of over $100,000 on their reward cards. The use of these cards should be done correctly otherwise with the large number of cards in the market; it may be confusing to choose the right one.

Before you choose a card, you need to evaluate the reason why you need it. One major aspect you need to consider is your spending habit. You need to check where your money goes to including travel and purchase of food stuffs. If you are business traveler, it is certain that you want to save money in your trip expenses. Using credit card rewards can help you garner points which you can redeem for airline tickets or hotel stay.

Hotel and airline reward cards enable you earn points when you stay in designated hotel facilities or fly on certain airlines. These cards also give you redeemable points in your day-to-day spending, which you can use for hotel rooms or air tickets. For example, Gold Delta Sky Miles credit card issued by America Express offers you a 30,000 bonus miles but this is subject to spending $500 in your first three months of use.

If you are a spender who is trying to make ends meet, perhaps cash back card programs could be a good option. Your spending habits will guide you on which card program to go for. You should consider where you will use the card and how you plan to use it. The need to spend your money should not be enticed by the reward programs. This means that you should not stretch your spending in order to garner points.

The use of the card should come as part of your normal spending patterns. You do not have to take a major home remodeling so that you benefit from a credit card reward, however, if you are planning your do your renovation, it is not a bad idea to consider one. You will save money and garner points that you can redeem for cashbacks or holiday vacation.

Large purchases can help you rack up your points fast but one thing you need to remember is that these cards lose their value especially if you begin to experience high interest rate charges. If you are spending large amount from your credit cards, you may need to consider doing that during intro periods so that you have sufficient time to pay off the balance before the issuer starting charging interest.

Some cards will give an introductory period of up to 18 months. This is sufficient time for you to make arrangement to pay the balance, otherwise, you risk suffering from credit card debt, which can ruin your finances. Credit card debits can be difficult to service because the rates sky rocket very fast and with large percentages making it difficult to settle the amount you are owed. You may have credit cards balances attracting interest rates of up to 35 percent if you have balances rolled over.