Okay, we all know that there has been a lot of hype about the evil of credit cards. If we are honest about this then many would have to say they are their own worst enemy when it comes to credit card use.
Then when they realize this the first thing they do is head for a pair of scissors to cut up the card that they have basically abused.
I say “they” but I am just as guilty of this, or at least used to be. That was before I discovered that I could actually make my credit cards pay for some of the things I want and need for both my business and personal use. This also created an incentive for me to make sure I wasn’t wasting any of this new found money on interest payments. What I had discovered is how to make great use of rewards credit cards.
Your journey to success here will be first determining which cards are really reward givers and learning how to avoid the scams. This takes a bit of time but I am pleased to share my research into this which will save you a lot of time.
By the way don’t settle for half a reward. Meaning that if the points you have earned are going to pay for something like your mode of travel and your accommodations but not the taxes then you are getting half of a great deal. This is the type of experience you would get with the Aeroplan Card.
I did discover the BMO World Elite and with this my reward is 2% back on every card purchase I make. So when I use my points to pay with it includes the taxes. Now that is what you call a 100% reward.
If you really want a reward that counts then you need to become a savvy credit card user. The 2% sounds great but if you are paying 19% plus for interest then you are really not getting a bargain. So to make the reward system really pay off here are some simple steps to follow.
Understand that you are applying for a cash card and not a credit card. If you understand that you are going to deposit the amount of every purchase immediately then you are golden.
Check to see what the interest rates are in case that you missed any payment by mistake. However, start out with the mindset that you are going to clear the balances on the credit card every month.
Apply logical thinking. If you are really not a traveller, or one that does a lot of socializing then think carefully as to how beneficial a rewards credit card would be to you. However, if you choose one where the points can be used for other uses like shopping, then with the proper use of the card you have a great advantage.
Carefully study the rewards program the card is offering and what restrictions are on it. There is no point in using a card that is loaded with restrictions that are going to affect the way you can take advantage of the card. From the other side many cards provides freebees, insurance, tickets to shows and much more. You will never know about all those until you take the time to learn about them.
Be a smart shopper. Don’t just buy items that you don’t really need just so you can boost your points. That’s like robbing Peter to pay Paul as the saying goes.
Put your reward to good use. I am going on a yearly vacation with my family on those points and I will pay nothing! If you really do need or want to take a trip and your reward points are applicable to this then you are a winner. However, if you are using your reward just for the sake of using it then you are cheating yourself. What this means is that you really need to plan properly for the use of your points.
Think about the word “reward”. You should be using your points to reward yourself for something that you want and this is really your reward.
By following this format you are taking something that could be potentially dangerous to you financially and turning it into a very positive resource. At the same time, you are training yourself to be financially responsible and are really using credit cards the way they were originally intended to be.