8 ways to maximize your credit card rewards

Make your rewards card work for you.

Credit cards tend to offer reward programs as a way to separate themselves from competitors. So for every dollar you spend, you may get points to redeem for merchandise, or you may receive cold, hard cash back. But are you actually getting the rewards you signed up for? A 2011 study from Colloquy and Swift Exchange concluded that on average, one-third of the rewards from credit cards go unused. To ensure you’re using your rewards card to its full potential, here are some tips from experts:

Pick a rewards card that matches your lifestyle.

For example, if you don’t travel often, an airline rewards card won’t do much for you. “No matter how great the rewards are, if it doesn’t suit your lifestyle and the way you spend your money, it probably doesn’t make much sense to have it,” says Beverly Harzog, author of “Confessions of a Credit Junkie: Everything You Need to Know to Avoid the Mistakes I Made.”

Meet the minimum.

Many cards require a minimum amount of money to be spent during the first three months of ownership before the rewards kick in. John Ganotis, co-founder of Credit Card Insider, suggests this method for spending that minimum quickly: “You could buy a $1,000 gift card from Amazon.com and put it in your Amazon.com account and make your purchases throughout the year. It’s basically like you’ve prepaid for your items and are getting the rewards on your credit card.”

Read the fine print.

Not everyone does this, Harzog says. “You need to read all of the terms and conditions or you might spend money, thinking you’re getting rewards when you’re not,” she says. She notes that some cards offer a certain percentage of cash back until you’ve spent a certain amount, at which point either the cash-back offer ends or the percentage of cash back is lowered. Your points may also expire on a certain date, so if you aren’t watching, you could lose those rewards.

Don’t overlook the card’s other perks.

For instance, many cards offer purchase protection so if something you buy is lost, stolen or destroyed, you’ll be reimbursed, or at least partially reimbursed. Other cards have price protection, so if you buy a refrigerator for $1,900 and you see the same one for $1,200 a few weeks later, you may be able to get your credit card to refund the difference. “A lot of people overlook those benefits completely,” Ganotis says, citing travel insurance as another example.

Periodically reacquaint yourself with your rewards program.

Rewards points may expire if you don’t redeem them by a certain date. And many rewards programs change from quarter to quarter during the year, so during one season, the more you spend, the more you’ll save on gas, but then the next season, the more you spend, the more you’ll save on groceries. Harzog suggests taking a look at the program every time you scrutinize your credit card statement, which should be at least once a month.

Mind the annual fee.

It may make sense to get a card with an annual fee, and it may not. “Some cards don’t charge an annual fee during the first year, and keeping them open longer than that can throw off their value proposition,” says Odysseas Papadimitriou, CEO of WalletHub.com and CardHub.com. “Other cards charge annual fees but offer significant enough rewards to warrant doing so.”

Use your card responsibly.

This always makes smart financial sense, but it’s particularly relevant if you’re using credit cards to get rewards. For instance, you shouldn’t carry a balance. “If you’re paying interest on your purchases, you’re pretty much canceling out the value of the rewards,” Ganotis says. And avoid late fees, too. The fee and possible higher interest will negate the rewards you’re earning, and some cards will dump your rewards points for the month if you make a late payment.

If you have questions, call customer service.

“We’re seeing a lot more companies investing in their customer service departments,” Ganotis says. In fact, you’ve probably noticed the slew of bank and credit card TV ads bragging about their courteous treatment of customers. Apparently, companies are realizing that it isn’t good for business to hide behind automated voices and a menu of numbers. So feel free to call customer service and ask about your rewards points. Because when it comes to how these programs operate, if you don’t pay attention, you will pay for it.

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8 Ways to Maximize Your Credit Card Rewards originally appeared on usnews.com

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