Tips on Making Credit Card Companies Pay You, Instead of You Paying Them
You Can Earn Hundreds of Dollars Each Year Through Credit Card Reward Programs
My goal is to make the credit card company pay me, not the other way around. I do this by carefully selecting the cards I use. I don't look for the lowest interest, since I always pay my cards off every month. Instead I look for the card that offers the best rewards. I also try not to have more than four credit cards at any one time because then my finances become so complex, the rewards I earn are not worth it.
Your needs and your wants are the two things you should consider when looking for credit cards with rewards. Right now I am restoring an old house. I found a Citicard that earns me Home Depot gift cards whenever I use it. I have earned hundreds of dollars in Home Depot gift cards by using my Citicard and have been able to stretch my home restoration budget.
While a Home Depot credit card does not offer any rewards, I obtained one anyway, and it has saved me a lot of money. I got 10% off of my first purchase, up to a maximum of $200 off, when I opened the account. Since I needed lots of materials, I spent $2,000 and saved $200. Every so often, I get special offers and 10% off coupons from Home Depot because I have a Home Depot card. These offers have saved me hundreds of dollars. Between the Citicard rewards and using my Home Depot credit card, I have saved a couple thousand dollars.
Another credit card that pays rewards is L. L. Bean. I buy a lot of my clothes from L.L. Bean so I applied for and got one. I earn credit toward buying clothes, not only when I purchased items from L .L. Bean, but whenever I purchase items from other companies. Furthermore, by using the L. L. Bean card when purchasing from L. L. Bean, I receive free shipping.
Your needs are probably different than mine. Maybe you use your car a lot for business and pleasure. Obtaining a credit card that saves you money when you put gas in your car would be useful. Some gas credit cards offer you five cents a gallon off or more when you use the card to buy gas. If you travel a lot by plane, there are credit cards that earn you free mileage. Also there are cards that save you money at various motels and hotels.
Before applying for credit cards with reward programs, determine what cards will give you the most return based on your needs. Then go to credit card comparison sites like http://www.creditcards.com/reward.php or http://www.cardratings.com/ and compare various cards. Make sure you read the fine print for each credit card.
I have one credit card that I use to earn rewards for my wants rather than my needs, and that's my Amazon card. I use it regularly because I like to buy old movies, television shows and books. So far I have received in rewards enough gift cards to get eight seasons of Andy Griffith, five seasons of Dick Van Dyke, three seasons of I Love Lucy, one season of Family Ties, along with some books and movies.
By researching credit card comparison sites, especially those that review reward programs, you should be able to find some credit cards that will pay you, instead of costing you. Whatever reward cards you end up obtaining, don't let your borrowing get out of control. All the rewards in the world are not worth going into debt for.
Published by Dan Weaver
I am an antiquarian bookseller and free-lance writer. I have a bachelor's and master's degree in Literature. View profile
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3 Comments
Post a CommentGood article. I have a Smiths/Kroger reward card that gets me deep discounts on groceries and $.10 to .20 discounts on gas. Also get $40 to 60 cash back checks every three months. I use it as a budget management account and I put everything I possibly can on it from my cellphone bill to my auto insurance. You are spot on when you say to NEVER carry a balance. Use credit cards responsibly.
Excellent point!
Dan - you can earn even more money if you pay your balance off 1-2 days before it's due and storing that money in a high interest savings account(HISA) until it is due. Most HISA's pay out interest monthly based on average monthly balance so the longer you keep that money in there the more money you earn. Also, for large purchases if possible charge them within the first couple days of your new billing cycle. If you charged that $2000 in Home Depot purchases on the first day of your billing cycle on your credit card that would have allowed you to store that money in a HISA for almost 60 days before you had to use it to pay off your credit card. If you are earning say 3.5% with your HISA then you would have earned an extra $11.66 in interest on that money. Over the course of a year you can earn an extra $100 a year easy just by paying at the last minue.