Does your credit card give you miles or loyalty points according to your spending? Great! This is one of the great advantages of the card and proof that this “plastic money” can indeed contribute to our financial life. But be careful not to fall into temptation and misuse it.
To really get the most out of your card score without contraindications, always follow the following golden rules!
1. Never parcel the card statement. Always pay 100%
The recent government installment rules have been beneficial, but card interest is still among the most expensive financial products you’ll find.
So if your budget doesn’t allow it, don’t increase your card spending just to earn more points! It may seem like an easy ‘win’, but it sure won’t offset the interest that will be charged to you if you only pay part of the invoice.
2. Analyze and compare the annual card charge rate: sometimes cheap is expensive
We usually choose that credit card which charges the lowest annual fee. If possible, that covers nothing. Be sure to follow this strategy, but also be sure to compare the benefits offered.
For example, a card may charge you an annual fee but offer a better bonus for miles or points for each dollar spent. From the math because in the end it may be more advantageous to pay the fee and keep the additional miles.
3. Always check your points or miles and evaluate the expiration date
Finding out after a while that most of your accumulated score has expired is a feeling I don’t even want from my enemy.
Always read the rules of your loyalty plan, particularly the clauses regarding the validity of your points or miles. Many programs also warn you when points expire in the short term. Stay tuned!
4. Do not cancel the card without redeeming the points first
Another common mistake is forgetting to redeem any points in case of card cancellation.
Some airline-related cards already make this redemption automatically, avoiding this kind of problem. But in most cases you have to perform this operation.
5. Do not pay the overdue invoice
This is very similar to the first tip. Whether due to forgetfulness or lack of money, we end up losing the payment date.
In this case, even paying just a few days later, there are fines and interest that are not low. And it will take full advantage of your loyalty plan score.