How to Play the Credit Card Game

Do you have plenty of credit cards? Do your cards offer cash back and rewards points? If you do, then you can take on the issuers by playing the credit card game. Read on to learn more.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Credit cards with rewards points
• Good money management skills
• Budget savvy
• Money
• Computer and Internet

1. Apply for cards that have rewards program. Organize and group your cards to what you will intend to use them for. For example one card is for gasoline and groceries, the other for prescriptions and doctor’s fees. Another one with high available balance for big ticket items, and another you can use for traveling expenses.
2. Get cards that offer no annual fees. Sometimes annual fees average at $59/year, to some who cannot pay off balances, getting this type of card even with rewards may not be worth it.
3. Activate your rewards program. Some credit card companies offer rewards program automatically, yet some wait for consumers to sign up before they can start earning points.
4. Be prepared to spend a lot to make a lot--or a little. Some people spend over $45,000 in credit card charges to get around $1000 bucks rebates. It would be a good idea if you have a big ticket item, for example a car, or a big home improvement project to use the credit card to purchase your materials even if you have cash in the bank. Then during the grace and no-interest fee period, pay the card in full. This way you can rack up points and your purchases are protected.
5. Be disciplined, if you want to make your rewards cards more rewarding. There are two types of clients that the card issues had categorized, the “transactors” who pay off their balances in full each month; and the “revolvers” who carry balances. If you are a revolver, it’s not worth it to even bother with rewards card. Whatever you earn will not make up for what you pay in interest. Still some would argue that it is still better than carrying a balance and paying interest without any rewards at all. But if you know how to play your cards right, you would know that most credit cards that offer rewards carry high interest rate. It may be a better idea instead of getting into that type of card to just get a card that has low interest if you are a revolver.
6. Be sure to understand the rules, remember that many card issues reserve the right to void the rewards if a payment is late, and they can limit the amount of cash or number of points redeemable. Also some may have a rule to have the rewards be redeemed within a certain time frame. There are times that reward points for airline miles are hard to redeem due to blackouts and restrictions.
7. Redeem your rewards. A lot of folks have rewards points that they do not even know exist. If you rack them up, use them up!
8. Go to web sites that give advice on how to play the credit card game. Some good sites rate the programs and provide venues for credit card holders to get advice.

Tips & Warnings

• Pay within the grace period to avoid paying interest.
• Do not go over your credit limit for it may negatively impact your credit scores.
• Do not use up all credit card limits, you'll never know when an emergency may arise that you would need your credit card and cash on hand.