Table of Contents
Credit card rewards can pay for vacations and put cash back in your pocket, but only if you play the game correctly. The golden rule: never pay interest to earn rewards.
Key Takeaways
How to earn points, miles, and cash back responsibly without paying interest.
- The Golden Rules of Rewards
- Choosing the Right System
- Frequently Asked Questions
- Conclusion
- Related Calculators
The Golden Rules of Rewards
- Pay in Full Every Month: Interest charges will instantly wipe out the value of any points or miles you earn.
- Know Your Bonus Categories: Use the right card for groceries, dining, and travel to maximize earnings.
- Utilize Sign-Up Bonuses: These are the fastest way to accumulate massive points balances.
Choosing the Right System
Cash back is king for simplicity, usually offering 1.5% to 2% on everything. Travel points (like Chase Ultimate Rewards or Amex Membership Rewards) offer higher potential value but require more effort to redeem effectively.
Frequently Asked Questions
How can I improve my credit score quickly?
Pay down balances, avoid new inquiries, and correct errors on your report.
What is a good credit score?
Generally, a score of 700 or above is considered good, while 800+ is excellent.
How often does my credit score update?
Usually once a month when lenders report to bureaus.
Conclusion
Treat your credit card like a debit card. If you stick to your budget and pay the balance in full, credit card rewards are essentially free money from the banks.