My Money Tree
Reward Credit Cards - Leverage Your Spending
Reward credit cards can provide you with great deals, especially if you are someone that pays off your balance at the end of each billing cycle. Through earning special items or services with your reward credit card, it makes it worthwhile to make large purchases with the card. Similarly, your daily expenses can be easily placed on your reward credit card and help you maximize the rewards you earn with your credit card. Here are a few additional tips for getting the most bang for your buck. Tip #1: Obtain a Companion Card If you are married and your spouse has a reward credit card, have your spouse request an additional card for you. Similarly, if you have a reward credit card, get an additional card for your spouse.
With two of you out there spending on your card, you will increase the amount of purchases placed on the card and give yourself more rewards. Tip #2: Use Your Card to Pay Bills Every month, you have certain bills to pay, such as gas, electricity, and phone service. You might also have regular services such as Internet and cable or satellite. All of these services require you to complete monthly payments. Since you have to pay these bills anyway, why not pay them with your credit card? Usually, you can set these bills up to be automatically billed to your reward credit card so you don't even have to think about them.
Then, you can pay the bills off at the end of each billing cycle. Not only will this help you to build up your rewards, it makes it easier to pay your bills since you can make just one convenient monthly payment. Other bills that may not be regular, but that need to be paid nonetheless, include dentist and doctor bills. When these bills come in, place them on your rewards credit card and watch your earned points increase. Before deciding to pay your bills with your credit card, however, you need to make sure there are no "convenience" fees levied against the card for paying your bills this way. The best reward credit cards won't have fees, but the company you are paying might. If there are fees, you probably should continue paying those bills by check. Chances are, the rewards you earn in return will not be enough to make the fees worthwhile. Tip #3: Charge Your Groceries Groceries are a regular expense. Yet, most people pay for their groceries with cash, a check, or a debit card.
Instead, charge these expenses to your reward credit card. If you take a look at your monthly grocery bill, you will probably discover that you are spending quite a bit every month on groceries. Take advantage of this expenditure and place it on your credit card. Then, simply apply the cash you would normally spend on groceries to the credit card bill. Tip #4: Charge Your Home Many people are surprised to discover that they can often charge their mortgage payment or rent to their credit card. Many mortgage companies and apartment property management companies accept credit card payments. Obviously, this can be a large amount of money charged to your reward credit card. Just be sure to pay it off at the end of each billing cycle. Otherwise, the finance charges could be so high that you negate any rewards you might receive from the card. Essentially, the best way to get the most from your rewards credit card is to charge as much as possible on the card.
Examine all of your monthly expenditures and determine if there is a way for you to pay them with your credit card - then earn rewards and pay all of your bills with one simple payment.
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