I am so excited. I’m going on a Caribbean cruise but that’s not what excites me so much. We’re going to stay in a suite. My wife and I are going to wake up in the morning and enjoy the view of the ocean on our private balcony. We are not the wealthiest people in the world and I’m very money-conscious so how are we affording to stay in a suite made for the rich and why am I agreeing to pay for it? I will tell you, our rewards credit card is making it all possible.
I’m amazed at how many people not only don’t take advantage of a rewards credit card but may not even know what one is. The idea behind these cards is simple. You receive a certain amount of points for every dollar you spend. Once you accumulate enough points, you are eligible to purchase merchandise with your points.
Some rewards cards are specifically geared for a certain type of reward. Some will earn you airline miles, rebates towards the purchase of a new car, or discounts on gas. Others are more general where your points will buy you anything in the company’s catalog.
Don’t forget that one point is not worth one dollar of buying power. A $50 gift card is going to cost you far more than 50 rewards points. For a gift card of $50 in one of my rewards catalogs I would have to pay 5,000 points!
Not a very good deal, right? Well, not really but it’s a great deal if you think about it a little differently. You would use your credit card with or without the rewards points, right? Any points you earn for living your normal life is a very good deal.
Like all credit cards, you have to shop around. Some have annual fees while others don’t. Some pay you double points for certain purchases while others pay you a set amount of points for everything. The rules and regulations for your points are different with the different cards. Don’t dismiss the cards with annual fees. As with most things, you get what you pay for,
Here’s the last bit of bad news. Although rewards credit cards are a great way to save money, if you don’t pay your credit card bill in full each month, the interest you’re paying is canceling the potential financial benefits you would gain. It still pays to have a rewards credit card if you’re paying interest, but your rewards are simply paying a small portion of your interest.
How many rewards points did it cost me to pay as much as 60% of my luxury cruise? Here is a hint: It took me a couple of years to collect the points and if I had that amount of rewards points in real dollars, I could perhaps consider myself as rich. If you follow a few key strategies, you will be surprised how quick you can collect points. I’ll tell you more details about the strategies in another article.
You might have already been on a cruise but this is my first one and my friends are probably tired of listening me talk about it. Nothing is better than a free dinner, though, and the with the fact that this vacation is costing me very little it is a penny pincher’s dream that become true. If anybody tells you that a rewards credit card is not worth the effort, time or the annual fee, send them to me. I’ll tell them how great the cruise was!
Compare the best cashback credit cards and then apply online. If you spend a lot on gas, you might want to consider a gas reward credit card.