Utilizing Credit Card Rewards Responsibly
Free Coupons, Printable Coupons, Grocery Coupons Online

FreeCoupons.com - Still Couponing and Saving Money Year In and Year Out!



Utilizing Credit Card Rewards Responsibly

Posted on Thursday, December 22nd, 2011 at 11:28 am
Pin It


Keep Up with the Latest Coupon Codes and Deals

Credit card companies are very interested in making their credit cards seem enticing to consumers.  This is why they create reward programs.  They hope that you will choose to spend more money than you had planned on spending, in order to receive those rewards.  If you are smart, then you can utilize credit card reward programs responsibly, and to your advantage.

Some credit card rewards give you a certain number of points every time you make a purchase with that card.  One example of this is the Amazon Visa card.  Every time you buy something with that card, you earn a certain number of points.  If you buy something from Amazon.com, then you get more points than you would if you bought the same item somewhere else.

Those points add up.  You can use those points as Amazon Credit.  In other words, your points almost become money that you can use to buy something else from Amazon.com.  Or, you can redeem those points through the Amazon card website.  When you have accumulated enough points, they will mail you a check that you can take to the bank and cash.  There are also other items that you can spend your points on.

This type of rewards program is designed to encourage you to make more purchases.  It also is designed to influence you to make those purchases from Amazon.com.

In order to use this rewards program responsibly, you need to think before you buy.  Are you buying that item because it is something that you need?  Or, are you buying it just so you can get more points?  Another way to use this rewards program responsibly is to make sure that you pay off your entire balance each time you get a bill.  Don’t let those purchases generate an interest rate for you to pay off.

Other rewards programs give you points only when you buy certain types of items during a certain period of time.  One example of this is the Discover Card Cashback rewards program.  From January through March of 2012, you can earn a 5% Cashback bonus when you buy gas, or purchase tickets to a museum or movie theater with your Discover card.

In April of 2012, you will not be able to earn the Cashback reward for those types of purchases anymore.  Instead, you can now earn the Cashback reward when you use your Discover card to make purchases at restaurants and movie theaters.  The types of purchases that will allow you to earn the Cashback reward will change as the year goes on.

In order to use this type of rewards program responsibly, you have to make sure that you are constantly aware of exactly what kinds of purchases will generate a Cashback reward.  Don’t use the card to make purchases that won’t earn the reward.  Again, it is still a good idea to pay off your entire balance every time you receive a credit card bill, so you won’t generate any interest payments.

 

 

Leave a Reply

Your email address will not be published.


 

Good Tip: Saving money is important – especially if you have a lot of expenses like bills to pay, loans to pay off, and all the other things that drain your bank account. Figuring out a way to save money can feel tedious to some, and like a punishment to others. U.S. News suggests that you try one of these money saving challenges. The “No Eating Out for a Month” Challenge This one is self-explanatory. The goal is to avoid eating out for an entire month. This might be super easy for people who enjoy making meals at home. People who really enjoy dining out, or ordering food to be sent to their home, may struggle with this one. It’s worth a try because spending money on take-out is more expensive than buying groceries. The Pantry Challenge This one is a variation of the “No Eating Out for a Month” challenge. The goal is to use up all of your groceries before you buy more. It forces you to try and remember why you bought a food or beverage that you don’t know what to do with, and gives you the opportunity to find a way to use it. The one exemption to this challenge is the foods that have expired. Don’t eat them! Throw them in the trash. The “No Spend” Challenge Make a goal to avoid spending money during an entire weekend. The only exemption in this challenge is that you are allowed to pay bills. This challenge is interesting because it requires creativity. You must be creative and find workarounds for problems that you would typically solve by spending money. You may have a different outlook on spending after finishing this challenge.