You hear about it all the time.  Your friend’s friend was able to get free round-trip plane tickets for his entire family.  So they went on an inexpensive vacation. And, they did it all with credit card points. 

You are probably thinking, “The most I ever got was a free tank of gas to get me to work.”  But the truth is, there are ways that you can make that credit card work for you. The trick is learning what cards to use and learning how to use them.  

The credit card companies offer you these “rewards” in hopes that you will over-charge, and they have to pay significant interest.  

You don’t want to end up over your head or searching for promissory note buyers to bail you out of debt because of credit cards. But, if you are careful, you can outsmart them, capitalize on the incentives, and never pay a dime in interest.

Check out these tips for using your credit card

Set Goals About How to Use Bonuses

There are a lot of different ways you can use credit card bonuses.  If you are going to try to maximize your bonuses, you need to set goals on how to use them.  Some cards offer better travel rewards, while others offer better cash-back incentives. Make sure you have clear goals in mind, so you know what card to use and when to use it.

Treat it Like a Debit Card

Pay full due amount on your card. Don’t fall into the trap of paying just the minimum amount due.  

Keep Track of Your Credit Score

If you want to qualify for cards that have the best promotions, you need the best credit score.  So, make sure you closely monitor your score.

Use Technology to Track Your Balances

Most credit cards will have a secure website where you can track and monitor your spending ad your rewards.  Take advantage of these websites, so your monthly statement does not surprise you.

Stay Organized

If you have multiple cards open because they all offer different rewards, you will need a system to stay organized.  It doesn’t matter if you use a sophisticated spreadsheet or a spiral-bound notebook. Just develop an organizational system.

Take Advantage of Sign Up Bonuses

A lot of times, when you sign up for a card, they will have specific terms.  If you meet these terms, you will get additional bonus rewards. Make sure you are aware of these sign-up bonuses and that you use them to your advantage.

Sign Up at the Right Time

Different cards offer better rewards if you sign up at specific times of the year.  Do your homework before you apply for a card. If you wait a month or two, you might get enrolled in a better bonus program.

Conclusion

Let’s face it. The credit card industry is not hurting for money. That being said, you need to take what you can get. If they are offering points for anything, you need to take advantage of the ideas above.  The goal is to reap the rewards without paying interest on your spending.  

If you spend one cent in interest, it’s not worth it. Instead, buy whatever it is they are offering as a reward. It will be much less expensive than insane interest rates.