It’s no mystery that there is a humongous debt crisis, thanks, in part, to the way many of us use credit cards. But let’s be honest, credit card companies are exceptional when it comes to getting people to use their products. They offer enticing deals, like credit cards with points for travel or gas that customers can take advantage of – as long as they use them wisely.
Credit cards are always offering mouth-watering deals for rewards to tempt people to use their cards. If you’re smart about it, though, these cards can return serious value. People always say the best thing to spend your money on is experiences. Even better when a credit card company is footing the bill for that experience.
The benefits of using credit cards with points for travel
The most important aspect of getting the benefits of a rewards card is making sure those same rewards don’t end up working against you. A travel rewards card can fund luxurious vacations and visits to dream destinations when the rewards are high enough. With some special offers, these rewards might be available sooner than later.
Credit cards with points for travel: Bonus miles and special offers
For example, Capital One’s Venture card once ran a limited time bonus offer where the card owner could earn 100,000 bonus miles by spending $20,000 in the first year or 50,000 bonus miles for spending $3,000 in the first three months.
$20,000 is a lot of money and it can be challenging to project how you might use it. Still, if you budget appropriately and put your recurring expenses on this card, such as your groceries, phone bill, and similar expenses, you can make up a lot of ground towards reaching this number without adding a great deal to your costs.
Credit cards with points for travel: Extra miles on specific purchase
Get cards that reward you for your lifestyle. It is common for cards to give you extra miles on specific purchases. For instance, it’s most typical for a travel rewards card to reward you at a higher rate for travel purchases but it’s not uncommon to earn high rewards for other purchases. If you travel regularly for business, this can be an ideal way to earn extra miles towards a destination of your choosing, especially since your original purchases are business expenses anyway.
Cards might also reward you with extra points or miles for purchases on gas, groceries, dining out, and more. To earn more rewards, do your research to find the cards that reward you best for the purchase you already know you make often.
The most important way to help yourself save more
Always pay your bills in full. Don’t make purchases on your card that you can’t already afford. These offers can lure people into spending too much on credit cards and then the card companies reap the rewards of those people paying large amounts in interest. Think of the credit card company as the casino; they will always come out on top. Just make sure they are getting their profit from all their other customers.
Have you used credit cards that offer rewards? What was your experience like?