A credit card isn’t just convenient for shopping online and in store — when used responsibly, it’s a fantastic way to build and strengthen your credit score. When selecting a credit card, you may have chosen one that offers great rewards. This usually involves earning points on every dollar or two of balance paid, and being able to cash in these points for products, gift cards and other rewards. Some rewards cards focus on a special goal, like travel, but many are more general and flexible. If you aren’t sure what your credit card offers, give your provider a call — they can explain the details and/or offer you a card with better rewards if possible. Trust us, it’s worth looking into!
A credit card with a great rewards system is a great tool when you want to treat yourself, buy a gift or back down your credit card balance. These rewards programs are particularly useful around the holiday season and can be a fantastic resource for saving money. Plus, it’s worth repeating: every time you use your credit card and pay off the balance in a timely manner, you’re helping to build good credit. Here are some tips and points to consider when redeeming your credit card rewards.
Buy holiday gifts
One of the best ways to use your credit card rewards effectively is to let the point balance grow all year and then redeem those points for a number of gift cards just before the holiday season. This is an expensive time of year, and every dollar saved helps. You can give the actual gift cards as presents (they typically look like standard retail gift cards, so no one will know you used your reward points to get them). Or, use the gift cards to buy something nice for your loved ones. If you don’t see the retailer you want on your rewards option list, look for the option of a prepaid credit card reward instead. These make a great gift and can be used to shop just about anywhere.
Many credit card reward offerings include practical options like gas cards, home improvement store gift cards and gift cards for your local grocery store. You might be able to score a free tank of gas, that new faucet you’ve been needing or even a bag of groceries. You could even put these rewards towards your Christmas dinner! Redeeming points for these practical purchases is an excellent use of your points and in many cases, will create added cash flow elsewhere in your budget. After all, if you save $50 on gas while otherwise sticking to your monthly budget, you’ve got $50 in your pocket! Use it towards a bill or have a takeout meal with the savings — it’s a win either way.
If you’ve been diligently sticking to your budget, there’s no harm in using your rewards points to pamper yourself. After all, everyone deserves the occasional indulgence or special treat. Go ahead and get a gift card for yourself or redeem your points for whatever services or merchandise you’ve had your eye on. You might be surprised how many lovely things are available through credit card reward catalogues, from beauty goods to household items or hotel and travel vouchers. This money isn’t coming out of your regular monthly budget, so spend it as you desire and enjoy it guilt-free.
Put points toward your balance
Many credit card reward systems offer the option of paying back some of your balance with reward points. This is an excellent way to use your points smartly and effectively. It may be as small as $25 off your monthly bill, but every bit counts. Your reward will be a smaller interest payment and/or more cash in your pocket! That’s pretty satisfying, if you ask us.
We are here to help
These credit card reward hacks are great, but sometimes you need personalized help. If you’re dealing with financial challenges and could use a personal loan to help cover your expenses, please contact your easyfinancial branch or easyhome branch. You can also give us a call at 1-888-502-3279. We know that each of our customers’ situations is unique, and are committed to working with you to help you find a solution that will best fit your needs. After all, we’re here to help.