If there was one problem with earning benefits from a reward card, it is the approach. That is, the approach used to rack up rewards numbers is not deliberate. Without any clear strategy, making the most out of a travel rewards card proves limited. Now, this does not infer that some complex, “magical” process is required. It simply means one must apply a little logic to consumer habits.
If you want to get the most out of a travel reward card then you should only have one card. Some might assume this is self-defeating. After all, the more reward cards you own the more points you can accrue, correct? Not really. Spreading your points over three cards keeps them out of one account. Instead, they are defused over three accounts. That yields three cards with three small point balances. Obviously, one large balance is better than three small balances that are unusable. If you can not use the point balance then it is like not having a balance at all. This essentially renders the cards useless. If the cards have no value then what is the purpose of them? You might as well use a “non-rewards” card with lower interest rates instead.
Then there are other problems associated owning more than one card. The most common problem is the tendency for people to overspend. (Idle hands with too much credit always equal debt) Yes, even the most disciplined fiscal conservatives can en up in trouble with multiple credit cards. The goal of a travel rewards card is to save money. Any activity that undermines this goal is not the course of action to take. Remember, you want your cards to work for you and not the other way around. Follow this advice: limit you travel cards to one and many of these problems will be diverted.
Many people embrace the savings that a travel rewards card can provide. However, some also worry about running up their credit card balance. This is a legitimate concern particularly for those who use their rewards cards for every purchase. (They want to rack those points up quickly) So, here is a little strategy that will keep that balance from getting out of hand: pay your balance frequently through the month.
Some may consider the following approach archaic and cumbersome. But, if it works for you then it may be a wise option. When you receive a statement during the month you should make several photocopies. After you make a purchase on your travel rewards card, write a check for the exact amount of the purchase. Then, send it off in the mail that day. If you are not interested in doing this on a daily basis you could do it on a weekly basis. If you would prefer not to invest time writing checks or mailing out envelopes, the internet is an option.
That is, you can always log in to your card’s online account and make a quick payment. This is a quicker process and a better option. The key here is just to be consistent. Remember, the main goal here is to pay the bill ASAP. So, don’t wait until the billing statement comes to make a payment. This process will work wonders for keeping the amount you owe to a bare minimum.
Discipline and consistency is the key to making this strategy work. If you frequently use your card and then fall behind making payments, then you will find yourself in debt. Making frequent payments allows you to use your travel cards to your best advantage. This is the most strategic way to handle your finances. Clearly, employing such a strategy will be to your advantage.
While surfing the internet for info on travel rewards cards, you may have come across a website offering advice, tips, and recommendations. The design of these sites is fairly simple. They will provide a one paragraph description of a travel card. The description is often glowing and positive. It is not out of the norm for the site to refer to a particular card as the absolute best of the best. The site will then recommend you click on the card image and follow it to an application page.
Wait a minute. Upon closer inspection, it is obvious this review is repeated verbatim for every on the page. Hmmm. Does this all sound a little odd? Can every card be a top of the line card? Maybe or maybe not. However, it is doubtful that the person running the site has any experience with these cards. In reality, the site is an affiliate marketing site designed for earning commissions.
That is, the pictures of the travel rewards cards are affiliate advertisement banners. If a visitor to the site clicks on the ad and fills out an application, the publisher of the website receives a payment. This payment could be anywhere from $35 - $100. That is why there is a slew of mini “reviews” crammed into its small pages. Potential customers will probably not wander beyond the first page.
Let’s get something straight: there is absolutely nothing wrong with what the website publisher is doing. Promoting advertisements for travel cards is not wrong. However, presenting these ads as reviews is somewhat duplicit. That is why one needs to possess a critical eye when skimming such sites. You do want to apply for a solid card. Duplicit “reviews” might undermine this purpose. So, be wary of review sites you might come across.
You have accrued a mega-multitude of travel miles. Now, it is time for that well deserved vacation. You cash out those travels rewards you have been saving for years. You have enough miles for a plane ticket, hotel room, and car rental. All you have to do is follow the procedures for redeeming you miles. Hmmm. This might be a little tougher than expected. You have never booked travel accommodations with miles before. It seems it is a little more complicated than you thought. What a shame you can’t get any help with this. Actually, if your travel card is affiliated with a travel agency you have help. Yes, there are travel agents who can handle it all for you.
Yes, believe it or not there are online travel agencies that can take care of all these booking for you. Simply provide them with your mileage information and they will take care of everything for you. This can be a huge plus for those who lack the experience to book their own itinerary. Such booking might even be made more complicated if there are special requirements or restrictions present. Once again, this will not prove to be a problem anymore. The travel agency can handle all the work for you. There is not reason to struggle with redeeming your miles for a vacation.
What if you are unsure if a particular travel card has an affiliation with a travel agency? Simply contact the card’s customer service department to confirm prior to filling out the application. They will happily provide you with the information you need to make a decision. This may sound like a little extra effort but it is worth it in the long haul. Simply put, a card affiliated with a travel agency will save you a lot of time.
Using a travel rewards card to purchase a $300 television set generates 300 points. That is a given that most people understand. When you make purchases you accrue points. Yet, there are those cardholders who never seem to accrue many points. This is perplexing because in order to survive you have to spend money. No, that is not an over the top or hyperbolic statement. Look at the expenses life comes with: food, fuel, clothing, and health related items are purchased everyday. So, why are cardholders not accruing travel rewards? The answer is simple. They are not using their cards for “little” purchases. This is unfortunate. Little purchases do add up and they can yield a huge rewards pot of gold.
Many people will use their rewards cards for expensive purchases such as the $300 television set. Usually, they do not carry a lot of cash with them. Thanks to their credit cards they do not have to. They can make the purchase on plastic. When it comes to small purchases, however, they pay cash. There really is nothing wrong with this strategy unless you are looking to accrue travel reward points. If you are then you want to earn points at every opportunity you get. After all, you do want to get those reward points don’t you? $5 here, $10 there, and another $4 over yonder…all of those charges add up to many travel reward points. Of course, the more point acquired, the more gifts you gain.
Yes, those little purchases add up. In fact, the amount they eventually add up may surprise even the most budget conscious buyer. Consumers often make a ton of purchases they barely think about. This is because the purchases are necessities. An astute reward points minded consumer, however, does pay attention and uses such purchases to his advantage.
