- The Savvy Promise
Reward cards might have felt a dramatic wobble last year when it came to its value plummeting to an average net value of $27 per year, but not all is lost when it comes to making the most of a bitter situation if you are an avid points chaser. Some credit cards might be feeling lighter with their decrease in point value, but we have six tips that will help you get the most bang for your buck when it comes to investing in a reward card that offers you the best value.
1. Switch things up
If you rely on your rewards to help you be frugal, but you feel that your current card is just not offering value for your money you can always switch things up by getting a new one. A survey by Mozo reveal that by the end of 2017 reward cards value on some cards decreased by an astonishing 63%. This meant that only 32 cards on the market were able to give anything worth its salt, this being $100 or more. If you are paying more for your credit card, but not receiving your money’s worth then it is time to enter the market to find a credit card that offers a better deal.
2. Targeted swiping
People who spend $19,000 a year above and have a credit card that has a strong reward value benefit the most from gaining rewards points easily. The whole point of rewards is that you need to spend in order to unlock points. But what if you are not a big spender? Targeting what you spend your money on is one way to build points. Reward programs tend to have an eligible purchase list on various items such as groceries, fuel, and flights to help you gain more points. If you spread these evenly and keep tabs on promotional periods you will be able to make the most of whatever rewards you have gathered.
3. Tag team it
Include your partner to gathering rewards with the best reward card in town to increase your points together. By adding an additional cardholder to your account, you will be able to stand more chances of increasing the amount of points you earn. The catch is to find a card that matches every dollar you spend, so go for a card like The American Express Explorer that offers you 1 or more points for every dollar you spend.
4. Get a good head start with sign-up bonuses
If you are on the market looking for a reward credit card, you might have noticed that there are massive sign up points that will make any point chaser weep. However, before you get excited about receiving a promised 80k to 100k points upon sign up it is best to check the fine print. Most cards require that you spend a certain amount when it comes to unlocking these points. This is where you need to balance out the cards cost against value.
5. Check the other features
There is no need to frown if your points are still sitting at the double digits region. Rewards cards usually come with other excellent perks that you can use while you are still building your points to something that can get you something worth your points. You can use the travel insurance benefits, free wine that gets provided at associate restaurants, or the concierge service that can come in handy when travelling.
6. Don’t forget to check the expiration date
Checking the expiry date for redeeming your points is important. That way you want all the points you have worked so hard to collect go down the drain. If you are a forgetful person, it is best to set a reminder that will notify you that the expiry date is approaching.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.