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How to Get The Most Out of Your Credit Cards With These 13 Tips

Posted By peronalfynance40 218 days ago on Finance

https://adventuresinfrugalliving.com - Did you receive your first credit card recently? Are you trying to rebuild your credit after getting out of debt? Then you’ll need to understand how to use the card wisely and get the most out of its’ benefits. The most important thing to remember about credit cards is that you shouldn’t max them out and that it’s important to pay off your balance in full every month to avoid the accrual of interest on the card. Here are ways to get the most out of your credit card. 1. Request Higher Credit Limit Some cardholders want to request an increase in their card limit, and if you’re someone who pays your bill on time every month, use this as leverage when you do this. However, if you tend to overspend on credit cards, it is better to request a decrease in your card limit. By doing this, you’re putting yourself on a spending budget and you’re making the card work for you rather than against you. 2. Maximize Rewards by Using The Card for Everyday Purchases If you have a rewards credit card that offers cashback for groceries, gas, or other retail purchases, use your card for some of these purchases. As long as you pay the balance in full on time each month, it won’t hurt to use your credit card for these things. 3. Take Advantage of Your Card’s Travel Perks Your credit card can even help you save money on travel expenses if you use it wisely. Some credit cards offer concierge services that you can contact if you want to book a hotel or restaurant in the city you’re visiting. If your travel credit card is branded with a major hotel, then you’ll be able to get upgrades to your hotel room. Other credit card travel perks include lounge access and priority boarding. Travel insurance is also a part of particular credit cards. Read through your card’s benefits to see what your travel perks are. 4. Track Your Rewards If you have a rewards credit card, it’s wise to track your rewards so that you’ll know which perks you can take advantage of soon. There are apps available that help you do this. The AwardWallet app is designed to track your frequent flyer miles and other rewards from different credit cards. It supports about 600 loyalty programs and you can see the expiration dates for your rewards. 5. Invest Your Cash Back Rewards Do you need extra money to boost your investment account or retirement account? Then use your cashback rewards to do it. Certain credit cards allow you to deposit your cashback rewards into certain investment accounts. The American Express Platinum Card for Schwab lets you redeem points for $1.25 each and you can turn them into deposits that you would place in your Charles Schwab account. The Fidelity Rewards Visa Signature Card gives you a no-limit 2% cashback reward on all purchases, and the cash can be deposited into your Fidelity investment or retirement account. 6. Use Your Card Issuer’s Shopping Portal Some credit cards have their own shopping portals, and you can earn reward points just by using the card’s portal. For example, if you have a Chase card, you can utilize the Shop Through Chase feature to buy things online. In order to receive the points, you’ll need to click on the retailer’s button that says “Shop This Offer.” Then you’ll buy what you want from a specific retailer and earn the points. 7. Pay Most Important Bills With Credit Card If you’re low on cash and you have another week until payday, then you can earn reward points by paying certain important bills with your card. Just make sure that you don’t max out your card and only charge what you can afford to pay back on time. By using your credit card to pay bills, you use less of your own money while building a solid credit history. 8. Stock Up on Emergency Foods Since most credit cards offer cashback rewards on groceries, why not use your card to stock up on non-perishable foods that you can consume during emergencies such as hurricanes or power outages? Natural disasters often cause refrigerated foods to spoil if outages last for weeks, but with non-perishable foods, you can get through it without starving. 9. Use Your Credit Card for Business Expenses If you’re turning your hobby into a legitimate business, then you’ll need to spend money on marketing, growing your website, and packaging products. As a blogger, I now use certain paid subscriptions to grow my blog and get more traffic. I recently applied for a credit card as a way to assist me with paying for these expenses. It is best to get a business credit card so you can separate your personal credit from your business credit. 10. Look for a Credit Card With a 2% Cash Back Reward You want to get a credit card that offers at least 2% cashback in rewards. NerdWallet has a neat list of credit cards that have a 2% cashback on purchases. In my case, I’m looking for a credit card that allows me to deposit the earned cash rewards into my investment account so cards like the Fidelity Rewards Signature Visa Card would appeal to me the most. 11. Redeem Your Points to Buy Gift Cards Whether it’s your anniversary or your mom’s birthday, you can’t go wrong with giving someone a gift card. Did you know that you can use your credit card to redeem points in order to buy gift cards? This can shave off hundreds on your gift giving budget. 12. Fund Your Child’s 529 Plan There are other credit cards that you can use to assist with funding your child’s 529 plan. The Upromise Mastercard lets you earn 1.529% cashback when you link the card to your child’s 529 plan. And the CollegeCounts 529 Rewards Visa Card takes the cash rewards you earn and goes into the 529 college savings plan. Keep in mind that this shouldn’t be your primary vehicle for funding your child’s college savings plan. 13. Look for a Credit Card With No Annual Fees If you’re on a budget but want the benefits of a credit card, get one that has no annual fees. Without the annual fees, you save money and you’ll only have to think about your monthly balance. Read different personal finance articles to do research on which no annual fee cards offer you the best perks. These are a few amazing ways to get the most out of your credit card rewards. If your finances are not the best right now, postpone credit card usage until you pay down most of your debts.

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