Make your reward card pay you maximum everytime

Duran Mueller
Apr 26, 2007
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Credit card companies, in an effort to increase their client base provide credit cards with rewards. Reward cards as they are known bring cashback, shopping discounts, insurance, travel discounts, hotel discounts and discounts on business expenses etc. However, it takes more than a casual effort to get the maximum out of your reward card. This article provides a concise insight on how make the most of your reward card.

Reward cards generally carry a high rate of interest than a non-reward credit card. To avail the benefits of a reward card fully, make sure that you repay your balance in full every month. If you miss on repayments it is very likely that credit card companies won't reward you.

The cashback mentioned in the reward cards is usually the upper limit. The amount of cash that you will earn will always be less than the mentioned limit unless your spending levels with the credit card are very high. So, it will be better to have a reward card with high cashback limit.

Credit card companies have exclusive tie-ups with stores, vendors, filling stations, airlines, courier companies, hotels, resorts, hospitals etc. To get the benefits of rewards the spending has to be done at those very places mentioned in the credit card, otherwise the rewards might not get credited to your account.

Some credit card companies give initial reward points, travel miles, airmiles or shopping discounts when you make your first purchase but they can be redeemed only when you spend a certain 'high' amount of money with your credit card. Make sure that the spending limits are low, so that you don't have to burn a hole in your pocket before getting a glimpse of that reward.

Credit card companies play the tricky game of reward limits, reward expiry, blackout dates, travel restrictions, etc. to limit the economic impact of rewards on themselves. Getting a feel about these restrictions and how they will affect the reward scheme of credit card will give a picture whether credit card company is duping you or is a genuine reward provider.

Rewards that come with credit card enhance its value and provide additional services and savings for the credit card holder. But, if a credit card holder is not smart enough he might end up paying a high interest rate without getting any reward benefit.