Friday, 2 August 2019

Do's and Dont's Of Credit Card Rewards

Do's and Dont's Of Credit Card Rewards

In my last article, I told you what to look out for when applying for a new credit card. Now, one of the things that I said you should avoid is paying an annual fee, but I must admit to you that I do have one credit card with an annual fee and the reason why I made the decision to apply for that card is because it's got some really great rewards and perks.

If you are missing payments or carrying a balance over from months to month on your credit cards then I would say you are not ready just yet to pay annual fees for rewards program, wait till you are really close to being debt-free or until you are completely debt-free and then you can graduate up to paying an annual fee for a really great rewards program

There is a lot of credit cards that offer rewards programs for free, so I would suggest you look into some of those 


Credit Card Rewards: Dos

Apply for a credit card with rewards that align to your needs and interest, this one's going to be pretty obvious but it's really important

If you don't eat out at restaurants a lot, then it doesn't make sense for you to apply to a credit card that offers you rewards at restaurants.


  1. Gas?
  2. Groceries
  3. Restaurants
  4. Travel Rewards
  5. Cashback

Think about what it's that you need and spend the most money on or what it is that you are interested in and then apply for a credit card that offers you rewards and perks in that specific area.


Credit Card Rewards: Dont's

Don't spend money that you don't have just to get rewards. This one is really hard because as soon as you open up a brand new card the credit card issuers put pressure on you to try to spend more to get perks

For example, they will say spend $1,000 in the first 90 days and you will get 20,000 bonus points, but if you don't usually spend $1,000 in 3 months you shouldn't go on a shopping spree just so that you can get to $1,000 to get those reward points

Because in essence what you are doing is just paying extra money for them. 


  • Don't apply for lots of different cards that offer lots of different rewards, it's going to take forever for you to get any of the rewards from any of those cards


It makes more sense for you to be strategic put all of your typical expense on one major credit card so that you can really maximize the rewards that it's being offered. This way you are going to get the most bang for your buck in the form of your most preferred reward


Credit Card Rewards: Dont's

Don't apply for a credit card with rewards that expire, lots of different credit cards have actually eliminated the expiration date but it's not the case with every credit card, so be really careful and make sure that you read the terms and conditions of your credit card

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