How to Save Money with your Rewards Card by Todd Holliday

Saving money by using a credit card may seem like a paradox to many consumers, but it is possible. Did you know that there are many rewards credit cards out there that offer cash back incentives? What about airline and hotel accommodations for free? When you manage your credit wisely, you can actually save money by using credit cards versus cash. Here are some helpful tips to get you on your way:

Get the Most Out of your Card

The most important thing to remember when using your rewards card, or any card for that matter, is that you must be responsible with your credit. How can you save money if you are actually spending more than you save? Many rewards cards have a low annual fee, and some have no annual fee at all.

You receive your reward at the time of purchase, not at the time of payoff. So, if you use your card for common, everyday household expenses, you are receiving a reward for purchases that you would be making anyway. Keep in mind that the APR of the card only comes into play if you maintain a balance on the card. Paying off your balances monthly is a great way to save more money with your rewards card.

Making your payments on time, and staying within your spending limit will help you get the most out of your rewards card. Late payment fees, and over-the-limit fees can decrease your profits drastically. Maintain a list of all of your cards, along with the due dates, credit limit, and approximate monthly payment. This will help you stay on track even if a bill gets lost in the mail.

Airline Rewards Cards

If you are planning a trip or vacation in the future, an airline rewards card may be perfect for you. These cards start off with a low (or no) annual fee, and have a reasonable APR. If you travel frequently, or utilize the same airline for all of your travels, the airline rewards card is extremely beneficial. The credit card companies partner together with the airlines to offer you great deals such as one or more frequent flyer miles per dollar that you spend with your rewards card. Many of these cards go the extra mile by offering protection programs for the traveler including emergency services, traveling accident insurance, and even lost luggage insurance.

Hotel Rewards Cards

Combine an airline rewards card with a hotel rewards card, and you have increased your savings drastically. Hotel rewards cards are versatile and offer you savings at a select group of hotels. Each purchase made on the card gives you bonus points towards a free or discounted stay at these hotels. Some of these bonus points can even be used toward frequent flyer miles, or discounted gasoline.

Gasoline Rewards Cards

Gasoline rewards cards are cards that almost everyone can use. These cards offer cash back incentives, or bonus points toward gasoline purchases. Some cards will even offer cash back on other automotive expenses such as maintenance. Many cards will offer protection plans for traveling accidents, auto rental insurance, and road side assistance. If you are a driver, a gasoline reward card may be the card for you!

Take your time, review the offers and make the decision that is right for you. In many instances, consumers choose to apply for several different credit card offers. If you are a frequent traveler, you may decide to carry both an airline rewards card and a hotel rewards card. We have done the work for you, and have detailed each reward card offer on our website. Making an informed choice is the best way to save money with your rewards card.