Let’s face it, living life costs money. And the formula for living life is pretty standard.
For many people, basic living expenses include:
- Rent/Mortgage
- Utilities
- Cable/Satellite/Streaming services
- Food/Groceries
- Clothes
- Car Payment/Public Transportation
- Auto Insurance
- Gas
- Cell Phone
- Internet
Some of us have more expenses. Some of us have less.
As a married father of two and someone attempting to live the “American Dream”, I’ve also bought a lot of “STUFF” over the years. I’ve spent hundreds of thousands of dollars on stuff.
I’ve taken the family on numerous trips and vacations, spending thousands along the way. Needless to say, I’ve spent a lot of money over the years. And I didn’t earn one point or mile from any of it!
So if I was going to spend the money anyways, why not take advantage of the credit card rewards and sign-up offers that give you points, perks, and miles for everyday spending?
Because I didn’t have a clue! Had I understood the Credit Card Game, I would have many more thousands of dollars in my bank account.
Don’t be like me!
You see, I went 30 years of my adult life spending on both the necessities and the niceties of life without taking advantage of credit card rewards. “Why?”, you might ask. Well it was because I was uneducated when it came to credit card benefit and reward programs. I’ve always been afraid of carrying a credit card balance and so I figured, I would minimize my use of credit cards, saving them for when they were absolutely required. You know, like when renting a car. But besides the occasional car rental, my credit card use was minimal. I used my debit card instead – all the while, I was listening to my friends and coworkers talk about the first class seats they had booked to Hawaii or the suite they got upgraded to at their favorite hotel – all using points and miles they had earned.
As someone who considers themselves an educated and sophisticated individual, I realized that I had been making a grave mistake when it came to this key financial aspect of my life. So several years ago, I decided to change that. I went on a journey to educate and arm myself in the many facets of Points, Miles, and Credit Card/Travel perks. So here is the genesis of the the Credit Card game.
Signing up for a new credit card can be exciting, especially when there are tempting signup bonuses to take advantage of. From cash back rewards to travel miles, credit card issuers offer various incentives to entice new cardholders. “Why do they do this?”, you might ask. Well its pretty simple. Credit Card issuers make their money from individuals who carry a balance each month on their credit card. In other words they make money from those who don’t pay off their credit cards at the end of each month, by charging interest payments. And card issuers use credit card sign-up offers to entice consumers like you and I to sign up for their credit cards. The catch is, you usually have to spend a certain amount of money on the card in the first 3-6 months in order to be awarded those amazing sign-up bonuses.
Those who are disciplined enough to pay off their credit cards each month (or carry a very small balance) end up winning by taking advantage of the sign-up offers and ongoing rewards. Those who let their balance build up on the credit card, still get the perks and offers but these are offset by the high interest charges they end up paying over time.
Now earlier when I was talking about my friends and acquaintances who were flying to Hawaii and upgrading their hotels using points – the key was, they either used their sign-up bonuses to pay for some of these things OR for months to years on end, they paid for all of their everyday purchases using their credit cards, earning points or miles along the way. And once they accumulated enough points or miles, they then used them to pay for things like airfare and hotels. And depending on which credit card they got, they might even have an upper tier hotel status like Gold, Platinum or Elite or Diamond. Initial sign-up bonuses usually equate to $500-$1500 worth of travel perks depending on the offer. Which often means 2-3 plane tickets or 5-7 hotel nights that can be purchased from points or miles gained from that offer. In the U.S. it takes a fair amount of points and miles to pay for things like flights and hotels. However, if you travel overseas, theses awards often stretch much further. Especially if travelling to places where the cost of living is much lower such as Thailand, Malaysia, or Indonesia. But that’s a topic for another time.
So what if you’re new to the credit card points and miles game like I was a few years ago? To truly maximize credit card benefits, it’s essential to know how to strategically unlock the best credit card signup rewards. Here are some tips to help you make the most of your credit card benefits:
1. Research the Best Signup Bonuses
Before applying for a credit card, take the time to research the best signup bonuses available on the market. Compare different credit cards to see which ones offer the most lucrative rewards, such as cash back bonuses, travel miles, or points that can be redeemed for merchandise or gift cards. Look for credit cards that align with your spending habits and lifestyle to ensure you can easily meet the minimum spending requirements to unlock the signup bonus.
2. Meet the Minimum Spend Requirement
Most credit card signup bonuses come with a minimum spend requirement that you must meet within a specified timeframe, typically within the first few months of opening the account. To maximize your benefits, it’s crucial to plan your purchases strategically to reach the minimum spend threshold. Consider using your new credit card for everyday expenses, such as groceries, gas, and bills, to accumulate the necessary spending to unlock the signup bonus.
3. Utilize Additional Cardholder Benefits
In addition to signup bonuses, many credit cards offer additional benefits to cardholders, such as travel insurance, purchase protection, extended warranties, and concierge services. Take advantage of these perks to maximize the value of your credit card. For example, if your credit card offers travel insurance, make sure to use it when booking flights or hotels to protect yourself in case of unexpected cancellations or emergencies.
4. Optimize Spending to Earn More Rewards
To earn the most rewards from your credit card, consider optimizing your spending habits. Some credit cards offer bonus rewards for specific categories, such as dining, travel, groceries, or gas. Take advantage of these bonus categories by using your credit card for purchases in those areas. Additionally, consider using your credit card for large purchases or recurring expenses to accumulate more rewards faster.
5. Keep Track of Your Rewards and Benefits
It’s essential to stay organized and keep track of your rewards and benefits to ensure you’re maximizing your credit card benefits. Monitor your rewards balance regularly to see how close you are to earning the signup bonus and redeem your rewards promptly to avoid expiration. Familiarize yourself with the terms and conditions of your credit card to take full advantage of the benefits available to you.
Unlocking the best credit card signup rewards can help you save money, earn valuable rewards, and enjoy additional benefits. By researching the best signup bonuses, meeting minimum spend requirements, utilizing additional cardholder benefits, optimizing your spending, and keeping track of your rewards, you can maximize the value of your credit card. With careful planning and strategic use of your credit card, you can make the most of your financial resources and enjoy the perks that come with being a savvy credit card user.
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