Does your credit card pay you reward points on purchases? If not, why don’t you switch? There are lots of cards that pay cash back and if used wisely, can really be to your financial advantage.
I exchange my VISA card points each year for gift cards at Christmas. My no-fee card pays 1% on all purchases and up to 5% in certain categories each quarter. I charge everything I can throughout the year (including insurance, taxes, etc.) and avoid paying any finance charges by paying the balance in full each month. Then I convert my points into gift cards in late November.
Does Your Credit Card Pay You?
Who Doesn’t Love Gift Cards?
Buying presents for the younger grandkids is easy but as they age, I have no idea what they like or want and gift cards are the perfect answer. You can’t go wrong on size, color or style and my credit card rewards program offers dozens of options, including department stores, restaurants, movie theaters, iTunes, etc. There’s truly something for everyone! This year, I ordered a couple gift cards for Kohl’s, two for Amazon, one for Home Depot, two for Kmart and one for Applebee’s. And though they’re worth a combined total of $425, these gift cards cost me nothing.
Or Exchange For Merchandise
Coincidentally, this year I needed three appliances for a rental unit and ordered them with my Sears card on Black Friday. Not only did I get a good deal, I also got triple rewards under the Sears program and ended up with $97 to spend. Beings I had a cordless drill on my gift list, I ordered it and a couple other gifts and they’re all shipping to my home free. Now, how can you beat that?
Will This Work For You?
In order for your credit card rewards program to work to your advantage, you must avoid all charges. If your card has an annual fee and/or if you pay any finance charges during the year, you’ve likely negated the benefit of the rewards. Granted, if you’re very careful, you may be able to earn more in rewards than you pay in fees but what’s the fun in that?
Readers, does your credit card pay you?
Crystal Marie lives by the philosophy that needing less rather than earning more is the key to happiness and financial serenity, which allowed her to “retire” from formal employment in health education at the age of 44. She can be found making the most of the second half on her blog, The Best 50 Years.