March 23, 2010
Let Your Dream Come True With Reward Credit Cards
I am so excited. I’m going on a Caribbean cruise but that’s not what excites me so much. We’re going to stay in a suite. My wife and I are going to wake up in the morning and enjoy the view of the ocean on our private balcony. We are not the wealthiest people in the world and I’m very money-conscious so how are we affording to stay in a suite made for the rich and why am I agreeing to pay for it? I will tell you, our rewards credit card is making it all possible.
I’m surprised at how many people do not take advantage of a rewards credit card and how many do not even know know what one is. The concept of these cards is very simple. You receive a certain amount of points for every dollar you spend with the card. Once you have enough points, you are able to purchase merchandise with your points.
Some rewards cards will give you certain type of reward only. Some will earn you airline miles and even eventually a free flight, rebates towards the purchase of a new car, or discounts at gas stations. Other cars are more general and your points will buy you anything in the company’s catalog.
Keep in mind that one point is not worth one dollar of buying power. A $50 gift card isn’t going to cost you 50 rewards points. A $50 gift card in one of my rewards catalogs would cost me 5,000 points!
Not a very good deal, right? Well, not really but it’s a great deal if you think about it a little differently. You would use your credit card with or without the rewards points, right? Any points you earn for living your normal life is a very good deal.
Like all credit cards, you have to shop around. Some have annual fees while others don’t. Some pay you double points for certain purchases while others pay you a set amount of points for everything. The rules and regulations for your points are different with the different cards. Don’t dismiss the cards with annual fees. As with most things, you get what you pay for,
Here’s the last bit of bad news. Although rewards credit cards are a great way to save money, if you don’t pay your credit card bill in full each month, the interest you’re paying is canceling the potential financial benefits you would gain. It still pays to have a rewards credit card if you’re paying interest, but your rewards are simply paying a small portion of your interest.
How many rewards points did I need to be able to pay 60% of my luxury cruise? I’ll give you a hint: I needed a few years to collect the points and if I had that amount of rewards points in actual dollars, I could likely consider myself a rich person. If you apply a few key strategies, it won’t take you very long. I’ll write more about this in another article.
This is my first cruise and my friends are probably bored of hearing me talk about it. Nothing in world tastes better than a free dinner. In fact, the vacation is costing me very little and it is a penny pincher’s dream that come true. If anybody says that a rewards credit card is worthless and a waste of time or the annual fee, send them to me. I’ll tell them about the great cruise.
Compare the best cashback credit cards and then apply online. If you spend a lot on gas, you might want to consider a gas reward credit card.
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