Maximize Credit Card Rewards by Paying your Bills
You may have a rewards credit card, but are you making the most of it? Having a cash-back or miles card is a good resource – make it work for you by putting money back in your pocket. Most people pay their bills every month by check when they could use their credit card instead.
Save at least 1% on all your bills simply by paying them with your credit card. Some debit cards also offer cash-back rewards, so you may be able to use those as well.
Here are a few key points to consider when using this money-saving strategy:
Spend often, Pay Often
The more you use your card, the more your rewards will add up – so spend often. In order to save money, get in the good habit of paying your credit card bills immediately – pay often. When using a system like this you don’t want to be paying credit card interest on your bills, that defeats the goal saving money. Paying a few days interest should be ok, but don’t let the balance add up to the point where it cancels your rewards savings.
Check your contract
Some cards will not offer you rewards if you make payments too quickly, so check your contract for the minimum period. You want to get rewards for the bills you pay, then repay in full before paying any sizable interest. If in doubt, give a call to your customer service department. You don’t need to tell them the whole story, just ask whether you still get your rewards if you pay your balance in full every month.
Bonus: Building Credit
As a bonus, you can improve your credit rating by showing regular activity and payments on your card. Over time this may help qualify you for better interest rates – an added bonus.If you have credit card rewards, you might as well use them.
This “cash-back on bills” strategy won’t work for everyone, but if you have the discipline there is money to be saved.
Watch the video related to credit card rewards
Rewards from credit cards are often used to scam people into getting the credit card and rarely turn out to be as good as they promise. Use credit cards responsibly, and avoid getting a card just for the rewards with advice from theowner of a debt settlement company in this free video on credit cards. Expert: Peter Repak Contact: www.ClearFinancialCompany.com Bio: Peter Repak has been in the debt settlement business for over half a decade. He and his wife founded the Clear Financial Company …
Help answer the question about credit card rewards
How do credit card rewards work?I just signed up for an Amazon Visa credit card, It says that for every dollar I spend I will gain a point….Once I get to 2500 points that I will get a $25 gift card. I have a vacation coming up in March and we are going to pay cash. Can I simply put the vacation on this card and immediately send payment and get the reward? Or do you think it has to stay on the card for a certain amount of time.
February 27th, 2009 at 11:28 am
Citi PremierPass(SM) reward program enable cardholders to earn a point for each dollar spent for general purchases and a point for each three miles flown by a cardholder on any airline. It may include others who buy the ticket using the card.The points earned can be used for travel, products; gift certificates and the like. The most number of points that can be earned annually is 100,000. There is expiration if the account has no activity in every three years.
You may find a great Citi Premier Pass Credit Card Review here:
http://www.rewardcreditcardsite.com/travel-rewards-credit-cards/citi-premeir-pass/
February 27th, 2009 at 12:57 pm
Hi,
You could find out and compare at this site under "Select By reward":
http://track.acclaimnetwork.com/apn_work/scripts/sclick.php?b2s=8790&SUBID=PARAM
February 28th, 2009 at 2:13 am
It sounds like Card #1 is the American Express Blue Cash card. I'm quite familiar with that card's reward structure.
Assuming your monthly spending is even across the 12-month period, then you should go with Card #1 (AmEx Blue Cash). Here's why: Your average rewards for supermarket spending with card #1 will be 3% (i.e. (5% + 1%) / 2), while your average rewards for supermarket spending with card #2 will only be 2%. Your average rewards percentage on all non-supermarket/gas/drug spending for both cards will be 1%.
Note, however, that to really know the optimal card for you for certain, you should take into account your entire categorical spending profile (including gasoline spending, drug store spending, and any other special rewards categories with either card).
You might find that this credit card rewards calculator is helpful to you:
http://www.creditcardtuneup.com/
February 28th, 2009 at 8:28 am
For those who have very good credit and have plans of taking advantage of the reward program, American Express designed a card for you, the Blue Sky Rewards.
What are the reasons why this card is simply for you? It has reasonable interest rate. You do not any annual fee to pay for. You can also take advantage of the 0% introductory rate for your purchases in six months time. It has to be made clear that the introductory rate for balance transfers only applies to those who initiate a transfer when applying online for the card.
The great thing about the Blue Sky from American Express, the credit card rewards program are amazing. There's no annual fee, low introductory rates, and free rewards program with no blackout dates or travel restrictions.
Other benefits offered by the Blue Sky from American Express include auto rental insurance, a Return Protection which credits cardholders with the maximum amount of $300 for purchases that are non-refundable in 90 days. This also includes a year end report.
You may find a great review here:
http://www.rewardcreditcardsite.com/travel-rewards-credit-cards/blue-sky-from-american-express/
February 28th, 2009 at 11:23 am
Nope. Any discounts you get from credit cards are part of the contract between you and the credit card company. They're considered "incentives," not income.
March 1st, 2009 at 4:09 am
No. It's not treated as taxable income.
March 2nd, 2009 at 1:27 am
I have a credit card from American Express that pays me 5% cash back on all the purchases I make with no annual fee. I got it from this website http://www.123gocreditcards.com I really recommend checking that site out because it has other rewards cards you might be interested in as well. Good luck.
March 2nd, 2009 at 8:11 am
cardnow.undonet.com – try this one. You can compare different credit cards and choose the best one for you.
March 2nd, 2009 at 7:24 pm
The reason why credit card companies offer rewards programs is to encourage spending. Through spending, the credit card companies and retail stores can generate more income. In return, you will be given points.
Therefore, the more you spend, the more points you can have. But don’t make this an excuse for overspending. The rule of thumb here is to use your rewards card whenever needed and possible.These rewards vary from free miles to discounted flights, trips, holidays, special gifts, bigger discounts, and cash or balance rebates. But before you can get these rewards, you have to accumulate certain points first. These numbers should work for your advantage.