Making full use of credit cards with rewards and no annual fee

Credit cards have a bad reputation, mainly because of the high interest rate incurred on non-payment of debt.

However, if you can budget your money well, credit cards are helpful.

How do you make use of credit cards with rewards and no annual fee?

1.  No annual fee period

You have to check the period where the banks waive the annual fee.

You cannot assume that the no annual fee promotion lasts forever.

In some cases, the waiver is for the first three years.  Once you have exceeded the first three years, you can call the bank to cancel the card or threaten to cancel the card.

They may waive the annual fee for another year.

2.  Credit card rewards

Check the credit card rewards regularly.

If you see an option for cash back, you can accumulate enough points for cash back.

The cash back reward is often not the best deal.

Some of the best deals are food vouchers.

However, cash back from credit card means you can use it to pay down the credit card debt.  It is money to you .  It is income to you.

3.  Introductory offers

Many credit cards give cash back for new users.

That means you are likely to get cash of $50 to $100 for signing up and using the credit card for the first time.

4.  Double reward points

Some credit cards give double reward points as long as you have reached the minimum spending eligibility.

That means if the credit card company gives double reward points for minimum spending above $1000, you can make use of such scheme to earn double reward points.

How do you do that without overspending?

For example, you are running low on groceries.  You need to buy more toilet rolls, detergents, and other necessities.

If there are just one or day left for the month, and you cannot possible clock up more than a thousand dollars spending, you can wait for the new calendar month before making your purchase.

It is hard to reach the minimum threshold for double reward points every month.  However, you can plan for alternate month.

You can think of other ways to charge to your credit cards too.

For example, you can pay for the dinner with your credit card, and get cash from your friends.  In this way, you get to earn the reward points while getting cash from your friends.

5.  Do not spend money for the sake of reward points.

Spend money only when you need to.

Do not spend money just because you want to get enough points to redeem something.  That is plain stupid.

Always use your commonsense when you want to make full use of credit cards with rewards and no annual fee.