Credit card reward points and miles are loyalty benefits that most credit card issuers give to their borrowers in exchange for spending money on their card.
Are credit card reward points worth it? The answer is yes — if you’re maximizing your rewards. To get the biggest possible benefit from your spending, you’ll want to do some quick research. Here are seven ways to get the most bang for your buck.
How to maximize your credit card reward points and miles
1. Take advantage of the sign-up bonus
The first way to maximize your credit card reward points and miles is to take advantage of a sign-up bonus. A sign-up bonus occurs when the credit card issuer gives you points simply for filling out an application and opening a line of credit with them.
While you’ll ultimately only get the sign-up bonus if you’re approved for the new line of credit, you won’t have to do anything other than open up the card to receive this benefit. If you’re interested in this bonus category, you should search Credible’s free tools to compare multiple reward cards at once so you can enjoy more points on travel, cash rewards and more.
2. Meet any spending requirements
Sometimes, when you open up a new credit card, lenders will offer you a certain amount of reward points or points on travel in exchange for spending a certain amount of money on the card within a specified time frame. For example, you might be given 50,000 miles in exchange for charging at least $3,000 within the first three months of owning the card.
Of course, you’ll only want to use this tip if you know that you can afford to pay off what you spend. However, if you know you need to make a big purchase, it might be a good time to open up a new card so that you can get added benefit from your spending. Again, Credible can help you find reward cards that make the most financial sense for you (don’t rule out cards with annual fees — sometimes the best loyalty programs will outweigh the cost……Read More>>