Most credit cards have some kind of rewards available. When you apply for a credit card, you’re typically doing it because you believe the benefits of having the credit card will be beneficial for how your family spends your money. However, it can be difficult to know how you can make sure you’re getting as much as possible out of the credit card. Here are four things you can do to get as many benefits as possible out of your card.
1. Choose a Credit Card That Has Benefits Outweighing the Annual Fee
Annual fees aren’t necessarily a bad thing; credit cards often have annual fees so that they can offer you better benefits. However, if you’re planning to sign up for a credit card with an annual fee, you need to make sure that the benefits of the card outweigh that fee. Otherwise, you’re basically wasting money on the card’s annual fee, and you might be better off choosing a different card.
2. Make Sure You Qualify for the Sign-Up Bonus
Sign-up bonuses are a big part of companies encouraging people to go for a specific credit card over another card. However, these bonuses often have requirements that may be difficult to achieve, depending on your spending habits. The Capital One Quicksilver sign up bonus is on the lower end of requirements; you only have to spend $500 in the first three months to be eligible for it. Check out the requirement and make sure you can comfortably meet it.
3. Use Yearly Benefits Every Year
Many credit cards offer yearly benefits, which are benefits that you can only use a certain number of times in either a calendar year or a year from the time you pay your annual fee. If you’re not using those yearly benefits every year, you’re missing out on some great benefits. Make sure you know when your yearly benefits for each card reset, as well as what benefits those are, so you can utilize them completely.
4. Have a List of General Benefits for Each of Your Credit Cards
Especially if you have a number of different credit cards, you might not really know what cards give you what benefits. There are many different common benefits for credit cards, and if some cards have benefits that others don’t, you need to keep those benefits straight. It can be helpful to keep a list of benefits like trip protection, extended warranty, purchase protection, and other benefits, as that way, you can utilize the right card for each purchase.
A new credit card can be an exciting decision, and many people choose new credit cards due to their benefits. However, you need to make sure that you’re getting as much out of those credit cards as you can. This includes front-loaded benefits, like sign-up bonuses, as well as generalized bonuses, like yearly credits. These four tips can help you get even more out of every credit card.