How to maximize your rewards with your credit card

Credit cards are a big industry. According to studies conducted in 2014, 89% of Canadian adults hold at least one of the 72 million Visa and MasterCard credit cards in circulation. Credit cards are the method of payment of choice for the vast majority and that is largely due to the loyalty incentives that many offer.

These rewards – points, cash back, or a sign up bonus – can add up to a significant amount of money for everyday shopping. Here are some ways that you can do most of your credit card rewards:


Choose a map that fits your lifestyle

Choose a map that fits your lifestyle

The rewards of credit cards usually fall into three categories: travel, cash back, or in-store credit cards. A travel reward card would be of no use if you travel rarely. Examine your spending habits and retailer preferences to see which program aligns with your goals. Use the Choice Card to pay for all your purchases to maximize your benefits.


Doubling on points

credit cards

If the credit card of your choice is linked to a specific credit card rewards program, do not forget to swipe the loyalty card every time you make a purchase. Loyalty cards are designed to work with affiliate credit cards so you can earn rewards faster. Forgetting the loyalty cards at home means that you lose points when you are at the checkout.


Buy gift cards to reach spending bonus

Buy gift cards to reach spending bonus

Most credit cards offer registration bonuses worth several hundred dollars once you exceed the minimum purchase required in a short period, often within the first 90 days. Purchasing gift cards from specific retailers can help you achieve these minimum purchases while some forms of payment are not accepted.


Remember the other benefits

Remember the other benefits

Take full advantage of your credit card benefits so that you do not spend money when it is not needed. With price protection, you can recover the difference of money from your credit card company on large ticket purchases like that of the TV dropped to $ 999 from $ 1,200. If you have paid for your entire trip using a credit card, you may not need to purchase travel insurance or

medical insurance. Check the fine print to understand the limitations so that there are no surprises.


The last word

Credit card rewards certainly have their advantages, but they come with a cost. Be aware that cards that offer rewards come with an annual fee. If reward results in 2% of total expenses, you would have to spend $ 5,000 to cover the $ 100 annual fee before you feel the difference. If it is not worth it, cancel the card in the first year to avoid paying fees.

Neglecting to pay the balance in full each month may also incur late fees, lost rewards and rates as high as 30% interest. No rewards are worth it if your debts increase.

When used correctly, credit card rewards are a powerful device in your financial toolbox. Take a minute to explore the possibilities, mean more money in your pockets than you will love. Check out the Ness Patter Credit Card Reward Comparison Tool to find the card that best suits your needs and start earning rewards today!