Maximizing Credit Card Rewards

In their quest to get you to sign up for their credit card, banks and financial institutions are coming up with more and higher incentives to entice you. Frequent flyer miles gave way to gas miles which opened the door for cash rebates and reward points to be used at 'our fine member merchants'. When most other things are equal (APR, annual fees, fees for transfers et al), the style of reward points and how you can make use of them can be the deciding factor in which card you choose to put in your wallet.

One of your best options for a credit card these days is one of the current crops that offer higher rewards/rebates for purchases made in gas stations, convenience stores and supermarkets. These so-called 'everyday purchases' are the market that credit card companies want to capture. That's why the big push to highlight the convenience of using a credit card for things like grocery shopping - a great way to keep track of your purchases, they point out - gasoline purchases and other everyday incidentals. In order to get you to do that, they're offering rewards and cash back on those purchases that are higher than those for other purchases.

Take a look at American Express' credit card offering, Blue Cash. The card offers a 0% introductory APR for the first six months. After that, the APR is from 11.2% to 16.2% depending on your credit report. There is no annual fee, no fee for balance transfers, and the APR for balance transfers is 4.99% for the life of the balance. Already, it's looking like a very nice deal.

Add in, however, the cash back rewards program, and you have a credit card that can actually SAVE you money. If you pay off your balance in full every month on time, there is NO INTEREST for 20 days on any of your purchases. The Rewards program offers you 1% back on all your 'everyday purchases' up to the first $6,500 you pay for with your card. In addition, you'll get .5% on all other purchases that you charge on your card. If you charge more than $6,500 on your American Express Blue Cash card, your cash rebate goes up to 5% on everyday purchases and 1% on all others.

How does that stack up? If you've budgeted $125 per week for groceries, that's $6,500 for the year. Pay for that on your Blue Cash card AND PAY THE BILL WITHIN THE GRACE PERIOD, and you'll save $65 on groceries for the year. If you stick to that, and also pay for your gasoline with your Blue Cash card, you'll get 5% back of those purchases - since your grocery purchases alone put you into the 5% bracket. If you gas up to the tune of $40 a week, that's another $104 in savings over the year.

Granted, taking full advantage of that sort of Cash back rewards program requires discipline and forethought - but it's not as hard as it sounds. It just means thinking of your credit card as just another bill that you pay in full each month. And that, after all, is the best and most common advice that financial experts give.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

---

Credit Suicide

Few things influence the home buying process more than your... Read More

Which Citi Mastercard Is Right For You?

You've decided to apply for a Citi MasterCard, but with... Read More

Top 5 Credit Misconceptions

We have all heard the rumors?from neighbors, relatives or friends.... Read More

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy... Read More

How to Get Credit Reporting Agencies to Help You

The process of clearing credit can be laborious and frustrating.... Read More

Understanding Credit Card Penalties

Because most of us have one or two credit cards... Read More

Simple Identity Theft Protection

How many of you bank, shop, or transact other business... Read More

Bank Robbery Growing In U.S.

Bank robbery has grown to become a huge problem in... Read More

Tips For Getting Your First Credit Card

Most of us get a credit card on our name... Read More

Learn The Truth About Identity Theft

Identity theft is the fastest growing crime in America, according... Read More

A Cure for an Ailing Credit

Credit has become a much-used word, thanks to the various... Read More

How Creditors Measure Your Credit Rating

Creditors will measure your credit rating based on the following... Read More

Opting For A Credit Card? Check Out Certain Terms

You've just received a "pre-approved" credit card offer in your... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

Automobile Credit Report

When applying for a loan to purchase a car, the... Read More

How To Survive In A Plastic World, Qualifying For Credit Card

Let's face it, having credit is no longer a choice.... Read More

Credit Report Hassles

There is no end to the amount of pain that... Read More

How Does a Creditor Determine Whether to Grant You Credit?

Credit 101How does a creditor determine whether to grant you... Read More

Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums

Did you know that you could make sure to get... Read More

Credit and Its Cost

What is Credit? Credit is money granted by a lender... Read More

4 Steps to Creating Good Credit

As a consumer you've learned the importance of establishing a... Read More

Credit Card Benefits and Drawbacks

Credit cards have both benefits and drawbacks. It is wise... Read More

Looking for that Low interest Credit Card?

If you have been shopping around for a Low Interest... Read More

Credit and Banking Money Saving Services

The first rule when applying for banking and credit services... Read More

Identity Theft ? Guard Your Childrens Social Security Numbers

Identity theft is a growing concern among Americans, and rates... Read More

Credit Card Entrapment - The Secrets are Out

Have you ever wondered why your credit card bill is... Read More

Credit Reporting: How Does It Work?

In order to determine a consumer's credit worthiness, creditors and... Read More

Is Plastic Making You Happier?

If you're like most people, you probably own at least... Read More

How Your Credit Rating Affects You, and How to Check It

You might not know it, but every time you take... Read More

Why Should You Use Credit Cards

Believe it or not, the way society, especially the commercial... Read More

Maximizing Credit Card Rewards

We spend money every single day on many different types... Read More

Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

About Search Entries:Every time a lender checks your credit history... Read More

How To Eliminate Credit Card Debt

There is almost nothing more troublesome than having too much... Read More