Using your credit cards to their full potential will help you make the most of your bonuses. There are several ways to make the most of your rewards, including timing your applications to coincide with big upcoming purchases, tracking your rewards, and avoiding churning. Here are some tips to enjoy credit card bonuses:
Track your rewards
If you pay off your balance in full each month, your American express gold benefits can be rewarding. Cash back, discounts, and free flights are just some of the perks you can enjoy with your credit card. But, managing all the perks and points can be a full-time job. To simplify things, there are several apps that track your rewards and offers. You can easily track your miles, rewards points, and cash back offers using these apps.
When enjoying your credit card bonus, don’t be tempted to use too many different cards. Churning can result in missed payments, and missed payments have the biggest impact on your credit score. Setting up auto-payments or alerts to remind you of upcoming payments is a smart way to avoid missing a payment. Similarly, you can avoid opening too many new credit accounts by waiting at least three months before applying for a new card.
Moreover, you’ll have to make sure to keep records of your credit card activities. Keeping track of spending and progress on your rewards is essential to avoid churning. But, this doesn’t mean you should give up on credit card bonuses altogether. You should be careful not to use them for large purchases, and keep a spreadsheet of what you spend each month. This way, you’ll know exactly how much you’ve spent and when you can cash in those rewards.
Maximize sign-up bonuses
One way to maximize credit card sign-up bonuses is to keep an eye out for new offers. Often, a credit card will offer you a sign-up bonus, but this bonus is usually tied to the minimum spending required for the account. Also, keep in mind that a sign-up bonus will not be worth much if you carry a balance on your account. In other words, you should spend your money within the first three months of opening your account to earn the bonus.
Another way to maximize credit card sign-up bonuses is to choose cards that offer you points or cash back. Points and miles can be redeemed for travel or merchandise, but the cash back bonus amount is the easiest to value. However, if you’re interested in a particular credit card, check out the different welcome bonuses offered by the issuer. You can also choose cards that offer higher rewards percentages.
Redeeming points for gift cards
There are several reasons why people choose to redeem credit card points for gift cards. They may be purchasing a gift for themselves or someone else, or they might want to convert the value of their rewards. In either case, it’s important to choose a card that you will use often and give as a gift. Cash rewards are nice, but the next best option is gift cards. Fortunately, many credit card issuers offer gift cards that are equivalent to or better than the value of the points you have accumulated.
However, many consumers have little extra cash to spend on gifts. To solve this problem, they can use a credit card with a 0% introductory APR. These cards can be used for holiday purchases as long as you agree to make reasonable payments. You may also redeem points for gift cards that are available from your loyalty program. Once you reach the minimum payment, you can use your reward to purchase a gift card.