Whether you are looking to earn enough points to earn a few airline tickets
or are looking for a cash back bonus, determining which credit card is right
for you is the key to maximizing your benefits.
Tailoring Your Card
If you are interested in earning points or earning a large cash back bonus,
choosing the right card is important. For most of us, spending $30,000 in order
to earn enough points to get a free domestic plane ticket is unrealistic.
However, if you fly frequently on a specific airline, getting that airline’s
card will benefit you immensely. Not only will you get points for the money you
spend, but you will receive points for every mile you fly. You can earn points
very quickly without spending nearly as much as would be required with a
generic card. Cards are made for every interest—if you spend a lot of time out
of doors, and REI card would suit well, offering you special discounts and
points for the money you spend. There are several cards out there that also
offer double points for money spent at grocery stores or gas stations—perfect
for the soccer mom with a lot of kids to feed. There is a card out there for
everybody, and if you can find it, you will quickly be on your way to faster
rewards.
Reading the Fine Print
No matter how fast you earn rewards or how good they are, they won’t be
worth it if you get slammed with a high APR or an outrageous annual fee. When
applying for your card of choice, don’t look only at the advertised interest
rates, annual fees, and the like. Many cards change these fees and rates after
a set period, usually one year. Be sure you read the fine print and fully
understand if and when rates change, and if they do, how much they change.
Using Your Card Effectively
If you have a card tailored for a specific purpose, such as bonuses on money
spent at grocery stores or points for the miles you fly, make sure you use it
every time you go to those places. If you are able, put large purchases on your
credit card. Make sure you have the money to pay for a big purchase, however,
because if you are unable to pay for it, the interest rates will end up costing
more than they are worth.