Tips for a More Rewarding Rewards Credit Card Experience

Tips for a More Rewarding Rewards Credit Card Experience

Rewards credit cards are more popular than ever, and the rewards that you can earn through rewards programs are more flexible and innovative than they have ever been. So if you know how to leverage these rewards programs and features to your advantage it is possible to earn some great perks just by using your credit card. Sometimes you can earn significant and valuable rewards simply by signing up for a credit card and putting it to good use, and there are rewards for an entire range of spending habits and preferences.

Whereas you used to be able to only earn rewards for particular kinds of buying or for such things as frequent flier travel, nowadays your options are virtually unlimited. There are rewards credit cards with benefits custom tailored to the needs and preferences of travelers, students, philanthropists, music buffs, foodies, clothing and fashion shoppers, and those who want to support a greener planet and smaller carbon footprint.

Take your pick – but follow these tips and guidelines to ensure that you get the best rewards card for the most rewarding cardholder experience.
» You can begin your search for the right rewards credit card by analyzing your own credit card use to identify which particular categories of spending apply most to you.

» If you buy lots of gasoline, for example, but rarely fly by airplane or eat in restaurants then it makes no sense to sign up for an airline or dining rewards card. But it makes plenty of sense for you to carry a gasoline rewards card.

» Maybe you aren’t really sure what your spending patterns look like or what areas and categories get the most attention from you in terms of your routine credit card spending habits. In that case it is a good idea to get a copy of your annual statement from your current credit card companies. You can get a printed hard copy or look at the information online, depending upon your card company and their policies and services.

» They will often send you a detailed report broken down into all sorts of convenient categories for merchandise or services. Many will also show you a pie chart of your spending so you can identify at a glance what kinds of spending you do the most, which will tell you what kinds of rewards you have the potential to earn fastest.

Once you have figured out what kinds of rewards are the right match for you, then you can begin a more intelligent search for the best possible rewards card. If no particular sector or category stands out in terms of your spending profile or card user habits, then that’s okay, too. In that case the cards you want to explore are those that offer awards, points, cash back, or other rewards for general card use. There are cards that let you earn rewards for lots of different kinds of purchases, for example, or based on the dollar amount you spend – and then deliver the rewards in universal perks like rebates or credits that can be applied to purchases or your card payment balance.

» Some cards promote cash-back offers that deliver rewards as high as 5% back on tons of different categories of purchases, and many of them will give you between 1% and 3% back for practically every dollar you spend on anything.
» You can also points that are matched one point per dollar you spend, or double points that give you two points per collar spent. Then you can later cash in or redeem these points for various awards and rewards like discounted or free merchandise.

» Each card company has their own rules and stipulations for credit card rewards and points, so you’ll need to study each card and evaluate it on its own merits.

» One of the best ways to sort through all of your options, analyze the pros and cons of each program, and find out which cards are available for people with your credit profile is to study our reviews and summaries on this website.

Don’t be fooled by the allure of programs that offer ultimate flexibility with how you can earn or redeem rewards, however. They may be great, and you may get exactly what you want and expect. But oftentimes these super user-friendly credit card rewards programs are the hardest ones to accumulate points in, because of the various terms and conditions the card issuer imposes. Study the fine print, in other words, not just the attractive highlights.

No matter what kinds of cards or rewards programs you find that will work for you and your particular goals and needs, there is one major pitfall you have to avoid at all cost. Too many cardholders own so many different rewards cards that their rewards are diluted across lots of cards. They never really accumulate enough points on any one card to make a big difference, because having too many rewards cards weakens your ability to earn awards.

So make a short list of rewards credit cards that you like. Then pick one or two but not more than that. Concentrate your spending on those two cards and rack up lots of points or other rewards to enjoy the ultimate benefit of being a rewards card customer.

Learn more about rewards credit cards by reading these articles:
http://money.cnn.com/galleries/2010/moneymag/1009/gallery.credit_card_rewards.moneymag/index.html
http://money.cnn.com/galleries/2007/moneymag/0705/gallery.cards_rewards.moneymag/
http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/credit-cards-with-the-best-rewards.aspx