Maximizing Credit Card Rewards

In their quest to get you to sign up for their credit card, banks and financial institutions are coming up with more and higher incentives to entice you. Frequent flyer miles gave way to gas miles which opened the door for cash rebates and reward points to be used at 'our fine member merchants'. When most other things are equal (APR, annual fees, fees for transfers et al), the style of reward points and how you can make use of them can be the deciding factor in which card you choose to put in your wallet.

One of your best options for a credit card these days is one of the current crops that offer higher rewards/rebates for purchases made in gas stations, convenience stores and supermarkets. These so-called 'everyday purchases' are the market that credit card companies want to capture. That's why the big push to highlight the convenience of using a credit card for things like grocery shopping - a great way to keep track of your purchases, they point out - gasoline purchases and other everyday incidentals. In order to get you to do that, they're offering rewards and cash back on those purchases that are higher than those for other purchases.

Take a look at American Express' credit card offering, Blue Cash. The card offers a 0% introductory APR for the first six months. After that, the APR is from 11.2% to 16.2% depending on your credit report. There is no annual fee, no fee for balance transfers, and the APR for balance transfers is 4.99% for the life of the balance. Already, it's looking like a very nice deal.

Add in, however, the cash back rewards program, and you have a credit card that can actually SAVE you money. If you pay off your balance in full every month on time, there is NO INTEREST for 20 days on any of your purchases. The Rewards program offers you 1% back on all your 'everyday purchases' up to the first $6,500 you pay for with your card. In addition, you'll get .5% on all other purchases that you charge on your card. If you charge more than $6,500 on your American Express Blue Cash card, your cash rebate goes up to 5% on everyday purchases and 1% on all others.

How does that stack up? If you've budgeted $125 per week for groceries, that's $6,500 for the year. Pay for that on your Blue Cash card AND PAY THE BILL WITHIN THE GRACE PERIOD, and you'll save $65 on groceries for the year. If you stick to that, and also pay for your gasoline with your Blue Cash card, you'll get 5% back of those purchases - since your grocery purchases alone put you into the 5% bracket. If you gas up to the tune of $40 a week, that's another $104 in savings over the year.

Granted, taking full advantage of that sort of Cash back rewards program requires discipline and forethought - but it's not as hard as it sounds. It just means thinking of your credit card as just another bill that you pay in full each month. And that, after all, is the best and most common advice that financial experts give.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

---

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday. Police knocking on his door. His family strained to the breaking point. He didn't do anything wrong... Read More

How to Dispute Credit Report Errors

Your credit report--a type of consumer report--contains information about where you work and live and how you pay your bills. It also may show whether you've been... Read More

The Things That UK Lenders Like to See on Your Credit File, (and? What They Don?t Like to See!)

Lenders are quite fussy about what they like to see on your credit report. So much so that you will have a hard time to meet their... Read More

Shoppers Beware - Tis The Season

It's the number one complaint from consumers and it only takes a moment for you to become a victim. While you search for holiday bargains, identity thieves... Read More

Dont Trade Your Future for Todays DooDads

"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You Deserve the Car Today and We Can Finance It for You," & "Spend Today, 0% APR until... Read More

Credit Traps Snag Consumers

Nearly 20 years ago I worked for a small consumer advocacy organization in Washington, DC. Each week we received sacks full of mail from consumers across the... Read More

Credit Cards And Loans - So Many Options - So Little Time

Credit Cards and Loans sounds like just two things, but in actuality, it is dozens of things. Due to a combination of user preferences, lifestyles, and marketing... Read More

Fun with Credit Cards

For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how... Read More

Credit Cards - Why Prepay?

With prepaid credit cards, you get the practicality of plastic while choosing exactly how much debt to charge. By taking charge of your personal financing, you determine... Read More

Ways to Look Good without Selling Your Soul to the Credit Card Sharks

1. Buy clothes at thrift stores. BEFORE you buy them, however, hold the clothing to the light to make sure there are no tears, check the seams... Read More

Maximizing Credit Card Rewards

In their quest to get you to sign up for their credit card, banks and financial institutions are coming up with more and higher incentives to entice... Read More

Rewards Cards: Are They Worth It?

Virtually all consumers will have a credit card at some point in their lives. Is this an understatement? Probably, as most consumers carry multiple credit cards. Selecting... Read More

A Cure for an Ailing Credit

Credit has become a much-used word, thanks to the various connotations that it is being used in. Transactions in which the payment is deferred to the near... Read More

The FICO Score Misconceptions

There are many misconceptions about credit scores out there. There are borrowers who believe that they don't have a credit score. There are others who think that... Read More

The Easy Way To Gain Access To Your Free Online Credit Report

When you apply for credit, those lending you the money want to know if you are going to pay them back. One way they decide if you... Read More

Convenience Can Be Costly

You've just opened your credit card bill and attached to your statement you find a "convenience check" included. It may already be filled out with a dollar... Read More

Home Loans ? Repair Your Credit Before You Buy

Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at... Read More

Debt Collection Agencies

Debt collection agencies are often a viable option for receiving payment on overdue bills. Here you can earn how debt collection agencies work and what to look... Read More

Update Your Computer System With Bad Credit Computer Financing

The moment I placed myself in front of the computer screen a whole new world beckoned me to join it. And years of strolling have proved incompetent... Read More

Credit Cards: What is the Universal Default Clause?

Most people who carry major credit cards are well aware that the interest rates associated with them tend to be higher than for other types of lending,... Read More

Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums

Did you know that you could make sure to get the best rates on your auto and homeowners insurance simply by having a good credit score.Additionally a... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product into a must have entity for everybody. Shopping Online you need a credit card. Wanna book a... Read More

Like It Or Not, You Have A Score To Settle!

Like It Or Not, You Have A Score To Settle! (Part 1 of 2 on Credit Scoring)Just when most people finish with school and can stop worrying... Read More

Credit Card Debt: How To Control It

A lot of people spend more money than they can afford to repay toward their credit card debts. To regain control over your finances and to manage... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to receive if you have bad credit because lenders focus heavily on your credit score and history of... Read More

Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers

What is trade credit?One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by... Read More