Sunday, 25 August 2019

All About Earning Credit Card Rewards | Mint Good Credit Tips Video

All About Earning Credit Card Rewards | Mint Good Credit Tips Video
01 Aug
2:17

This question comes from Travis of Mint's Facebook page And Travis asks this

What do you think about using credit cards to earn rewards? We pay off our cards every single month and we use the rewards to get cash back Is this logical? In general, rewards programs are set up to reward the credit card issuer However, if you're very, very disciplined with respect to how you use the card, rewards programs can actually be quite rewarding for the card holder The best way, in my mind, anyways, to use rewards points or rewards programs is to pay for things that you are normally going to buy anyways, and then pay them off at the end of the month That way, you're not revolving a balance from one month to the next, and therefore you're not paying interest on the debt

And you would be surprised how quickly paying interest can completely chew away any sort of value of the reward program Now, I would not use that card to take on additional debt just to earn points or earn miles, for example And if you think about it, go look at some of the prices you're paying for things like airline tickets at full retail price, and you would be surprised how much money you have to spend on rewards cards just to earn enough points or miles to pay for that ticket Example, some airlines charge 25,000 to 50,000 points to redeem for a round trip coach ticket You may be able to buy that ticket for $99, round trip

Was it really worth spending $25,000 on that reward card to earn a $99 ticket So, do the math Rewards cards can be good for you But if you're not careful with them, then they're going to cost you more than you really should be paying

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