6 Steps to Minimize Your Credit Card Debts and Maximize Its Rewards

All of us can get excited with the promise to earn more or get rewarded from our credit card spending. Credit cards with reward programs are definitely great but every reward credit card holder must also be aware of how to avoid its dangers and how to use it to their advantage.

True, if you don’t use your reward credit card wisely, you can get easily stuck in credit card debts. Nevertheless, there are ways to minimize the risks and maximize your rewards. Let’s talk about these steps one by one.

1. Choose a reward credit card with the right reward program. There are a variety of reward programs available for you to choose from - Frequent Flyer Miles Rewards, Gas Rewards, Hotel Rewards, and Cash Back Rewards credit cards. The question is, which type of reward program best matches your lifestyle and spending?

2. Read and understand your Credit Card Agreement. Did you take the time to read the fine print before submitting your credit card application? If not, you could’ve made the wrong credit card choice. Unfortunately, a lot of credit card holders rush into signing up for the cards they thought were great without reading the agreement in full. Remember that the true rates, costs and terms of your credit card are all stated in your contract so read the fine print no matter how small it is or how inconvenient it is.

3. Maximize the use of your reward credit card. You only earn rewards or points each time you use your card. Thus, it only makes sense that you should use your reward credit card whenever possible. Of course, this doesn’t mean you should spend more that what you can afford. So how can you maximize the use of your reward credit card?

Use it for your groceries as well as in paying your utility bills or other expenses that you’ll otherwise pay in cash. However, make sure that you pay off all these charges in full before your due date runs out. The moment you charged a purchase to your reward credit card, set aside the cash that you would’ve used to purchase it and pay it to your credit card immediately.

4. Know which purchases earn you the most points. Again, it’s important that understand the terms and conditions of your credit card’s reward program. What kind of purchases qualify for the points? Are there specific shops or establishments that you must purchase from in order to get points? What type of charges will enable you to double your points?

5. Choose a reward credit card with no blackout dates. Some reward credit cards impose blackout dates or expiration dates which means you can no longer use your points or redeem your rewards after a certain period. Obviously, these reward credit cards are not the ones you want. The best reward credit cards should give you the option to earn as many points as you can without worrying about blackout dates at all.

6. Avoid forfeiting the rewards you earned. Did you know that you can get disqualified from claiming or earning your rewards? Most reward credit cards will penalize you if you fail to submit your payments on time. Therefore, you should always pay attention to your due dates and make sure that you can pay off your balances on or before your last day of payment.

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