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You may not be swayed away by the holiday cheer when you think about your credit card, but the plus side is that the spending on your credit card is likely to have earned you some quantity of points, cash backs or miles. In today’s age, most of our wallets are at least carrying one of the rewards credit cards available in the market. Once you are certain not to splurge on your credit card, holding one of the rewards credit cards can come in to be very handy.
Instead of burdening your pocket with the purchase of gifts and other expenses involved in the holiday season, you should consider going through your credit card accounts to find some rewards that can come in handy this gift season. You may not even realize the number of rewards you may have accumulated.
However, not all the rewards credit cards are created with the same features and benefits. This is why there are a few things you can keep in mind that can help you in making your credit card your best buddy this gift season!
If you are not already holding one of the numerous great rewards credit cards available in the market, the gift season is the ideal time of the year to opt for one. It provides you with the opportunity to choose a card that offers bonus rewards on the things that you are likely to purchase.
Additionally, you can be lucky enough to earn a new cardmember signup bonus. These signup bonuses can be huge. However, they are subject to a particular amount of spending on your card. since the holiday season is the time you are likely to make big purchases using your rewards credit cards, these expenditures can help you meet the requirement for the bonus. The bonus can be in the form of a cashback, some rewards or miles.
An important fact to keep in mind is that you should only sign up for a card if you are certain about your holiday budget and are committed to using your card responsibly. It is not a very comfortable scenario to take up a load of debt that you are unable to cover because your costs are exceeding the value of even the best of credit card rewards.
Most of the rewards credit cards offer extra rewards on certain spending categories. You should be aware of the type of spending your rewards credit cards reward the most. This helps in the strategic use of cards for your various different purchases.
For instance, you may hold a card that offers bonus rewards on travel, so you should use this card for booking any flights you take. Whereas, if you have a card that offers additional rewards on grocery spending, you should use that card for your grocery purchases.
Some rewards credit cards also rotate the spending categories for which they provide bonuses. If you are holding such a card, you should be aware of the type of spending that earns you rewards at a particular time and make purchases accordingly. For example, if they are offering rewards on travel a few months prior to the holiday season, you could book your tickets in advance in order to earn those rewards.
When you are owning rewards credit cards that offer extra rewards for certain spending categories, you will want to try and shop for gifts as much as possible in the places that offer extra rewards. There are gift cards available in numerous grocery stores or gas stations. If your card offers rewards on any such spending categories, you should confirm if you are eligible to earn rewards on the purchase of gift cards, as all cards do not offer that.
If you are not certain about what to gift some of the people on your gift list, try to choose the presents that will get you the maximum rewards for spending. If your card offers you extra points for spending in restaurants and dining, you could opt for a restaurant gift card as a gift for your loved ones.
By following these four steps, you can turn your spending that you have to make during the gift season into numerous rewards on your credit card. If you maximize the number of rewards on your card, you will save in major areas. You will have a large number of miles, huge cashback, or a bunch of points that you can use when you wish to treat and pamper yourself.
A tip to always remember is that you should clear your outstanding dues when the bill reaches you well before the due date, otherwise the interest that you will end up paying to your rewards credit cards providers will outweigh any rewards that you may earn on your spendings.