How to Earn Max Reward Points & Cashback Without Overspending Your Credit Card?
Here are some useful and important tips for earning credit card rewards and cashback while still using your cards wisely:
- Pay off your balance in full each month. Avoid carrying a balance if at all possible, as interest charges will negate the value of any rewards you earn.
- Set a budget and stick to it. Determine how much you can realistically charge each month while still paying your balance off on time. Don’t be tempted to overspend just to rack up rewards.
- Focus on cards with benefits you will actually use. Don’t sign up for a card just because it offers a big signup bonus. Make sure its ongoing reward structure matches your spending habits.
- Consider cards with lower fees. Cards with annual fees often offer premium rewards. But if you don’t spend enough to offset the fee, consider a no-annual-fee rewards card.
- Use your rewards strategically. Many cards let you redeem points for cash back, gift cards or travel. Analyze your options to maximize the value of your rewards.
- Automate payments to avoid missed payments. Set up automatic payments for at least the minimum amount due each month from your checking account. This protects your credit score if you forget a payment due date.
- Watch out for high APRs if you do carry a balance. The interest rate on many reward cards is quite high. Avoid costly credit card debt, or look for a lower APR card if needed.
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Summary
The key is to think of rewards credit cards as convenient payment tools, not as easy money or unlimited spending accounts.
Used carefully, they can earn you free flights, hotel stays and more while you build your credit.
Just be sure to always make your payments on time and keep your balances low.
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