Master the Art of Saving with Rewards Credit Cards

Saving money should be one of your financial goals. Many people do not know this but you can use your rewards credit card to actually increase your savings. You need to maximize your hard earned points so that you can accumulate more rewards. Become a savvy card holder to positively influence your financial future. In order to achieve this, you need to perform the following:

Have the Most Appropriate Card

At the moment, there are probably thousands of credit cards available. Because of this, you can easily be lost in the sea of options laid out in front of you. The most important step that you need to take to save efficiently is to have the best card. Do not blame yourself if you find this quite difficult to accomplish. Credit card companies spend huge amounts of cash to advertise their products in hopes that they can effectively convince consumers to sign up for their card.

You will most likely find 1% cash back for every dollar you spend. Basically, that is just worth a cent as creditors change it to another name (i.e. miles, points, travel rewards, and so on). To have the best card, go for the one that gives you more than 1%. You might be surprised that there are cards that can let you earn up to 50% more than other regular rewards cards.

Don’t Fall for the “Special Offer” Trap

Some cards will let you earn up to 5% cash back for each purchase you make. There is a catch, however—you can enjoy this offer for a limited time only. Afterwards, the rate will drop to 1%. There may also be spending limits that will make it more difficult for you to receive the 5% cash back. Instead of going for a card that gives you a promo offer on rebates, why not opt for one that gives 1.5% cash back permanently?

Choose Cards with Cash Back Rewards

Points and miles are great if you are a huge spender or a frequent traveler. However, if you are an average person who uses his or her card for weekly purchases, go for a card that gives cash back. Most point systems have restrictions and requisites in redeeming the rewards. With cash back, the prize is pretty much straightforward.

Pay Your Balances in Full Each Month

You can only benefit from a rewards card if you do not carry a balance. Oftentimes, a rewards card comes with higher APR than those that do not have incentives programs. If you do not pay in full, the interest rate will instantly dominate the rewards that you can get.

Don’t Overspend Just to Gain Rewards

This is a universal blunder committed by card holders. The logic goes that if they spend more, they can earn more rewards. Chasing the cash returns or the points can eventually lead to financial trouble. Oftentimes, those who do this often encounter problems with paying their balance in full because their funds could not cover the charges they have made to the card.

Rewards credit cards, when used properly, can significantly help you save money. However, if you mismanage your account, this can lead to financial distress and, eventually, extreme debt.

Secret Perks Offered by Rewards Credit Cards

Miles, cash back, and points are often associated with rewards credit cards. However, this type of credit card has more valuable benefits that you may not know about. With these perks, you can save yourself from stress and get extra cash as well.

The trick to knowing and taking full advantage of the secret credit card perks is to familiarize yourself with the card agreement. You can also make a quick phone call to your creditor to discover the benefits your rewards card offers you.

Concierge Service

If you have platinum or a premium MasterCard and Visa card, this may be available for you. A team of professionally trained concierge will be willing to help you with your reservation needs. It will be much easier for a businessman with a very hectic schedule to secure a hotel room, a seat at sporting events, and gain assistance for party planning. Make sure you know about the additional charge you should pay for the concierge service. Typically, this will cost you $25 for each hour.

Roadside Help

If you are several miles away from home and your car suddenly stops working, your issuer will come to the rescue. What you need to do is call them and inform them of your situation. Someone or a team will be sent over as immediately as possible to help you with your dilemma. Towing, gas delivery, and car repairs may be charged individually against your credits.

Lost Luggage Protection

If a plane, train, ship, or bus damages or loses your luggage contents or the luggage itself, you are entitled for a reimbursement. This is not applied to all rewards credit cards, though. You should first note the restrictions that are imposed by your creditor. You can also purchase more coverage for your luggage from specific carriers.

Purchase Warranty Extension

The free repair period is a great gift to consumers. You can double this through the use of your rewards card. Typically, you may be given an extra year for the warranty period. This helps you save a lot when it comes to repair and other services from the manufacturer. It is important to remember that not all items are covered by this perk. For instance, cars and boats as well as other motorized automobiles are not eligible for a warranty extension. Their accessories may not also be recognized. Real estate properties and parts of real estate, such as ceiling fans and garage doors, may not be covered as well.

Collision Damage Waiver for Rented Vehicles

Many rewards credit cards offer insurance in case of auto impairment. This is particularly useful if you are driving a rental car. Collision damage and other types of car rental accidents may be covered by your insurance. You can save a hefty sum with the insurance since the rewards credit card can cover for a deductible portion of your own auto insurance policy. If you do not have auto insurance, your card can cover both theft and damage.

There may be a number of limitations on the collision damage waiver. Guarantee that you read and understand the fine print especially the section that explains the auto rental insurance.