Making Credit Card Rewards Work For You

I was reading a website the other day about a guy who was using his credit card rewards to travel around the world.  I thought that was the coolest thing ever – utilizing something like credit card rewards to make your dreams come true!   While his case is probably very rare, there are a lot of ways that you can find low interest credit cards that can work for you.  Here are some things to think about:

What Do You Do?

The first thing to think about is what you do.  This may be odd, but what do you do that can earn you rewards.  You see, when you compare credit cards, you’ll soon see that different cards offer different rewards for different types of spending.

There is no one card that is the best.  Instead, you need to think about what you do and where you spend money.  If you travel a lot, you may want to find a credit card that offers you the most rewards for travel related spending: airfare, hotels, rental cars, and restaurants.  If you drive a lot, you may want a credit card that offers cash back on gas.  If you buy groceries the most, find a card that gives rewards for that.

What Do You Want?

Part two is figuring out what you want in return for your spending.  There are a lot of options when it comes to credit card rewards: cash back, travel rewards, free flights, and points that you can redeem for stuff.  The best way to get what you want is to combine rewards.  So, if you already travel for work and earn miles, you may want to get a mileage card with the same airline you regularly use.  That will allow you to combine miles and earn rewards even faster.

If you don’t like travel or points, you could always opt for the cash back credit cards, which will earn you over 1% back on most of your purchases, higher if you fall into certain categories.