5 Perks To Registering for a Rewards Card ( And 2 Warnings)

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Reward cards can offer bonuses that can positively affect your whole family.  These credit cards can help you pay for family vacation hotel stays, airline travel, and much more.  The hardest step for most people is selecting and applying for the right card.  Once you receive your rewards card,  there are some tips and tricks that you will benefit from by following.  I’m going to go over all of this for you in this article.

Register for A Reward Card

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If you make the right choices and play your cards right (pun intended), then you can get a lot of benefits if you have more than one rewards card.  Some experts describe credit card rewards as free money.  But first, you need to register for some reward cards.

Some reward cards that you may want to register for include the following:  Capital One Venture Card, Chase Sapphire Reserve, Discover it Miles Card, US Bank FlexPerk Travel Rewards Visa Signature Card, Wells Fargo Rewards Card, Blue Cash  Preferred Card From American Express, Chase Freedom, Citi Double Cash Card, Barclaycard Arrival Plus World Elite Mastercard and American Express Preferred Rewards Gold.

How to Apply

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Each website from each card will walk you through the application process.  Be prepared to spend 5 to 10 minutes filling out the online application.  For most reward card applications, you are going to be required to fill out your name, birth date, address, social security number, and income.  By giving your social security number, you are allowing the credit card company to check your credit.  Your credit score will help them determine if they want to issue you the card.  If they feel you are too big of a risk, meaning you have a bad credit score, you will be declined.

If you are under the age of 21, you are required to have your own income.  However, if you are over 21 years of age, you can submit your household income for consideration.  Having a job is not a requirement for a credit card.  You also technically do not need a social security number if you have an individual taxpayer identification number.

Pay Off Your Cards Each Month

reward cards

None of the rewards are going to be worth it if you don’t pay off your card each month.  Rewards cards can carry hefty interest charges.  The rewards you will receive will be canceled out by interest charges incurred if you don’t make sure to pay it off each month.  So only put as many purchases on your cards as you are sure you can pay off each month.  This is the big number one rule of cashing in on reward card bonuses.

Tips and Tricks From Reward Card Gurus

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If you really want to get the most out of your reward cards, some experts recommend applying for up to 6 cards, get the rewards, and then cancel the cards one by one.  While this may seem like a great idea, there are some drawbacks to playing the system.  Your credit card score may be negatively affected by so many credit cards being canceled.  If you have a big loan that you will be applying for such as a vehicle or mortgage, this method may come back to haunt you.

Put As Many Purchases As Possible On Your Cards

reward cards

The more purchases that you put on your rewards card, the more reward points you will rack up.  Therefore, if you want to put as many purchases as possible on your reward credit cards, you may need to get creative and think outside of the box.  In addition to normal purchases for things like groceries and gas, there may be some other people that you can pay.  Ask your babysitter, lawn care person, and handyman if you can pay them with the gift cards that you’ve earned.  Some may gladly take a gift card, especially if it’s worth a bit more in pay than what you owe them. For example, if you owe a babysitter, $40, you may want to ask if she’d like a $50 gift card instead.

Get Creative

reward cards

If there are people that you can trust to use your rewards card for purchases, then let them and have them pay you in cash.  Usually, people only do this with close friends or family members.  For example, if your aunt is making a major purchase, offer for her to put it on your credit card.  She can then pay you the cash.  That way you rack up reward points.

Ask Friends and Family Members if you Can Pay Their Bills With Your Card

reward cards

In life, there may be people who you are really close with.  College roommates, cousins, close friends, and family members are some examples of people that you may be close with.  If you feel comfortable doing this, then ask them if you could pay their bills for them on your card.  In return, they pay you cash.  You’ll be racking up more rewards.  You may even want to share some of your rewards with them.

Summary

I’ve gone over some of the top reward cards that you may want to apply for.  I’ve also covered what’s involved with applying.  Once you have been accepted to receive a rewards card, it’s important that you pay off your balance each month.  It’s not smart to keep a balance on a rewards card because the interest is high.  If you must keep a balance, it’s better to do that on a regular credit card.

Some reward card gurus advise people to apply for multiple reward cards and then cancel the card after they redeem their awards.  This practice of playing the system does come with some drawbacks such as negatively impacting your credit score.  However, it is wise to put as many purchases on your rewards card as possible, instead of paying in cash.  If you feel comfortable asking close friends and family members, you may even want to put some of their purchases on your rewards card.  I hope that this advice helps you and your family members cash in on some great bonuses with your rewards card.

For more information, check out our Top 10 Rewards Cards of 2018.

 

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