6 Ways to Save with Rewards and Cashback Credit Cards

6 Ways to Save with Rewards and Cashback Credit Cards

Credit cards can be expensive. However, banks are now introducing cards that offer rewards and cashback at the end of the year. Such cards can actually save you money if you use them right. Here are a number of tips that will help you save money with a credit card rewards program:
1.     Get the Credit Cards that Match Your Interests
Credit cards offer rewards for things like air miles and travel miles, and for buying certain items from certain shops. If you get a credit card that offers excellent travel rewards, but if you travel very little, the rewards program is not worth the annual fee you have to pay for it. Therefore, apply for  cards with rewards that align with your existing interests. For example, if you go on business trips a lot, it makes sense to get a credit card that offers air mile perks. Likewise, buy cards offering rewards for things you already do, not things you hope to do in the future.
2.     Exclusively Spend Using the Credit Card Offering the Reward for the Money Spent
It’s normal for Canadians to carry multiple rewards cards at once. If one card rewards generously for filling your gas tank, use that card exclusively for that purpose. Doing so will increase your reward. If you have another card with travel mile perks, use that card all the time for travelling. Exclusive spending is the method to maximize your rewards from cards. If you have two rewards credit cards, split your expenses between the two; you will be splitting up your reward as well: https://www.lifeoncredit.ca/cashback-vs-rewards-credit-cards/
3.     Buy Credit Cards with Different Perks
Don’t get two reward credit cards offering the same travel perks. That’s redundant and you will only waste money. Instead, apply for different types of rewards programs. For example, have one card offering cashback for air miles, and another for shopping. Diversify to cover as many interests to get the most rewards.
4.     Shop at Stores Offering Discounts Specially for the Credit Card
Credit cards that offer rewards for shopping don’t cover all the stores in your area. Instead, there will be a select number of stores where you can shop to obtain your cashback or other rewards at the end of the year. Therefore, shop at these stores that do offer rewards. Some shops offer discounts exclusively for certain types of cards. You can save money on everyday shopping by taking advantage of such discounts.
5.     Take Advantage of Gift Card Bonus Points
Some gift cards offer bonus points on your credit card for shopping at certain stores. Therefore, don’t hesitate to buy gift cards from a local store and use them at other stores to nab those extra points. These types of offers are common during holidays like Christmas. So, be on the lookout to stack up on rewards points when doing your Christmas shopping.
6.     Stop Switching Cards
Some cardholders like to cancel cards after a couple of months. Then they sign up for a new card with rewards to take advantage of short-term perks like no annual fees or initially reduced interest. These perks don’t last long. If you keep opting out of rewards programs in this manner, you will lose money. Stick with the cards you use for a long time to stack up your rewards points. That’s the only way you will truly save money with cards.

Don’t forget to do the math. Don’t spend more money on subscription fees and interest than you do on rewards and cashback.

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