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Credit cards have had a bad reputation over the years. High interest rates, frustrating terms, and the ability to add exorbitant amounts of unsecured debt put all credit cards in the category of “bad debt.” However, credit cards don’t always live up to their former reputation.
The future of finance: Generation Z and their relationship with money
Tip: If your credit score is below 740, take these 4 moves now
Using your credit card responsibly can help you improve your credit score, develop self-discipline, and make important purchases. They may also come with perks and rewards you won’t want to miss. So, with a little self-discipline, you can jump into the credit card rewards revolution and put your cards to good use.
We asked experts from all over the world to share their best hacks for using credit card rewards. Find ways to save big and get the best deals on everything from travel to groceries.
to shop
It may seem silly, but credit card companies reward opening new accounts more than loyalty.
Martin Seeley, entrepreneur and founder of Mattress Next Day, recommends taking advantage of sign-up bonuses offered by credit card companies. “Most credit card companies offer large amounts of points as a sign-up bonus when opening an account. These offers can change frequently, but are often worth thousands of points. Yes, it gives you the opportunity to earn a large reward pool very quickly.”
Find points to use
Another tip from our experts is to sign up for a card with points and rewards that you’ll actually use. For the jetsetter, one of his best uses for points is travel. With fuel, airline tickets, and other travel-related costs skyrocketing, this holiday is a great time to use those points.
Morning Consult communications manager Anna Rose Pardue said a survey of how millennials use travel rewards found that “about 30 percent of U.S. adults and almost half of millennials will be traveling this year. We plan to redeem travel points in May or December to combat inflation.” ”
Take our poll: Are you setting up an emergency fund?
Additionally, the data revealed that more millennials than any other generation are not only travel reward card holders, but also travel reward card users. Millennials are also more likely to seek out travel rewards and rewards and use them to influence their travel destinations.
The whole idea is to find a credit card reward system that works for you. Hmm.
Find promotional offers
Credit card companies often offer time-sensitive deals and promotional offers to help you accumulate points quickly. “Boosted reward rates are sometimes offered by card issuers in the form of limited-time promotions,” said Jamie Penney, CEO of Shopping Foodie. He recommends signing up for the company’s emails to make sure you receive promotional offers.
Certain trends can also be taken advantage of by families who eat at home more often than they eat out. For example, Penney said: In addition, he may receive limited-time personalized offers that give him the opportunity to earn incentives. These promotions are worth taking advantage of because you can get big rewards right away. ”
invest cashback
Want to earn money with credit card points? Rob Berger, founder of allCards.com, suggested investing his card rewards in credit.
He said, “A lot has been written about using points and miles for free travel, and this is a great strategy,” but instead converted all rewards into cash and then Invest those rewards. He’s been doing it for about three years and currently has about $30,000 in investment balance.
pay off your statement
Did you know you can use your points to pay your bills? Fred Baker, senior travel editor at Travelness, said: This allows you to save interest and bring your balance to zero. ”
No matter how much money you spend and how many points you earn, it doesn’t help if you have a lot of credit card debt every month. It can take years to pay off your credit card debt. Especially if you’re only making minimum monthly payments. By using points to pay your bills, you can break out of the cycle of debt and work towards financial freedom.
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This article originally appeared on GOBankingRates.com: Credit card rewards experts share their best hacks for trading
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