If you already have a good credit score, it will be smart to also think of how to get more value from credit cards. To make the most of your reward credit cards, it’s best to use them monthly for purchases and bill payments in full. If you pay bills with cash or a debit card, you’re certainly leaving potential rewards on the table.
Accordingly, it isn’t a good idea to overspend to earn rewards. Follow your budget, and don’t adjust your spending to gain credit card rewards.
One perfect analogy of the abovementioned is – imagine you spent an additional $100 at restaurants because your credit card offers 5% back. After that $5 back, it’s worth knowing you’re far down at $95. Furthermore, rewards won’t usually increase in value, so it’s best to redeem your credit card rewards regularly or promptly.
Often watch out for new credit card options for additional benefits, which can be available every six months to a year.
Interest charges can limit or eliminate the value you get from credit card rewards. Reward cards tend to have higher interest rates than other credit cards, but you won’t be charged credit card interest if you can pay the card off every month. However, you’ll need good or excellent credit to qualify for reward cards with benefits.