Getting the Most Out of Credit Card Rewards Programs

What you may not realise is exactly how far your money isn’t going in earning you your coveted rewards – the dollar value on rewards points can seem miniscule if you take the time to look at it closely.

So how can a savvy consumer get the most “bang for their buck” and accrue the largest number of credit card rewards points possible, without incurring extra fees that would make it not worthwhile? There are two primary strategies that you can use or combine:

1. Have your spouse on your credit card. If you use cards tied to the same account, you essentially “team up” to earn points on a single card (which might lead to more extra points depending on spending levels and the particular credit card). This strategy also allows you to target your spending power towards the best rewards card for the type of reward you have the most use for.

2. Put routine expenses on your credit card. This might seem counterintuitive, because of interest rates and fees. However, those fees can be avoided with some cards by paying your balance off in full shortly after using the credit card. You might be surprised to see exactly how many points you could earn using this method, as we don’t generally think about our routine expenses the way we do a big unexpected expense.

Let’s look at a couple of regular expenses that you’re probably not currently putting towards your accumulating rewards points.

You probably purchase food and other household necessities on a regular basis weekly or bi-weekly. The larger your family is, the more you’re likely spending. It could amount to several hundred dollars each month in extra rewards points by simply paying with your credit card, and then paying off the balance (so the funds are still ultimately coming from your bank account).

If you rent, it’s possible that your landlord will allow you to pay that large expense with your credit card. It never hurts to ask. If you rent from a property management firm, they may even let you pay with your credit card directly online.

Pay your utilities with your credit card. This can also add a few hundred dollars per month to your rewards-earning balance.

Fill your gas tank with your credit card regularly. The high cost of fuel may as well be good for something, and as it turns out, it can help you earn your credit card rewards more quickly!

A little bit of clever spending can give you more rewards without spending a dime more than usual. Remember, small expenses can add up quickly, and they can have you flying high with free miles (or any other reward you choose) that much sooner.

Article correct at its author date: June 2008. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

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