Making the Most of Your Nonprime Credit Card Rewards

Credit Card

Credit cards are a great way to extend your purchasing power. Moreover, credit card rewards are another advantage a card gives. These allow you to make purchases without paying for them upfront with cash.  Rewards also work like gifts to loyal cardholders. The more often you use your card, the more gifts you get.

Think of cash rebates, points, miles, hotel stays and more. These are just a few of the rewards you can get!

Non-prime credit card rewards can also work the same way as standard credit cards. Depending on the issuer, there are many different reward programs for different cards. The reward program is an advantage you get from using a non-prime card, aside from the obvious fact that it can help you rebuild your credit.

Despite this great advantage, some cardholders take these rewards for granted. They only see credit cards for their primary usage, to purchase good and services.

These people are missing out on a lot. But, if they begin to understand how the rewards work and how they can make the most of it, they will appreciate this shiny piece of plastic even more.

Different Lifestyles, Different Credit Card Rewards

The kind of card you have tells what kind of rewards you get. In the same manner, you can get a card with which the reward matches well with your lifestyle.

Choosing the right non-prime credit card can make its rewards relevant to you. For example, if you are a frequent flyer, get a travel rewards card so you can get airline miles or hotel perks. However, the same card will not make sense for someone who isn’t into traveling. If you are a mom who uses your credit card to make grocery purchases, take a card with cash rebates instead.

When looking for the perfect non-prime credit card, you begin by shopping for one that has a reasonable interest rate. You can then think of whether the reward program suits your lifestyle. This combination can make the best credit card there is for you.

How are Credit Card Rewards Redeemed?

Rewards can be redeemed in many ways. This depends on the issuing company. Some are reflected back to your card. It can also be redeemed for vouchers or gift certificates. You can talk to your issuer on the possible reward redemption methods.

Be mindful of your rewards, most of them are good for a certain time only. It may expire after 18 to 24 months.

The earn and burn rate tells you about the value of each point you earn. This is identified by the card issuer. Example, per point you get 1 cent which you can use once you have racked up your points.

These are also credit card rewards that have a limit to the number of points you can redeem in a year. You must know about this detail as well.

To be able to enjoy these perks, make it a point to pay your balances in full every month. Failure to keep your account in good standing will lead to the forfeiture of the points you have accumulated. Some issuers may require a reinstatement fee from the cardholder for points earned during the said period.

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Do All Purchase with a Credit Card

No, we are not telling you to overspend using your card. We are simply saying that you make your credit card as your primary method of payment whenever possible.

Instead of paying with cash, use your credit card. This way you build up your bonus points. The more points, the bigger the rewards. You can then pay towards your credit card balance with the cash you initially have.

This is a wiser move than using your credit card when you cannot afford the purchase up front. You are still well within your spending budget but you have earned extra in the form of reward points.

If you want to get yourself a credit card because of its convenience and bonuses, by all means, go ahead. But always remember that you have to be responsible enough to handle one. It can extend your purchasing power. But if you are not careful with your spendings, it can also be a cause of financial dilemma.

Learn about your credit card options. There are many out there, including non-prime credit cards. They can have higher interest compared to their standard counterparts. non-prime credit cards, however, allow many people who are not eligible for a standard card gain access to credit.

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