Travel reward credit cards offer a unique opportunity to the savvy shopper – the opportunity to actually make money.  When most people think of credit cards, they think of losing money through finance charges and other fees.  If you use your travel reward credit card wisely, however, you can actually make money by making purchases you were already planning to make.  By following these simple tips, you can make money from your credit card as well.

 

Tip #1:  Pay Off Your Balance at the End of Each Billing Cycle

The most important thing you can do to make money with your travel reward credit card is to pay your balance off at the end of each billing cycle.  Unless you are in the midst of a special introductory period, every credit card charges interest.  Therefore, carrying a balance is certainly going to cost you money in the form of finance charges.  Carrying a balance on your travel reward credit card, on the other hand, will likely cost you even more.

In order to compensate for the rewards they provide, most travel reward credit cards charge interest rates that are higher than their traditional counterparts.  Therefore, if you carry a balance on one of these cards, the finance charges you have to pay will likely cost you more than you earn in rewards.

 

Tip #2:  Know How the Program Works

Not every travel reward credit card works in the same way.  Therefore, you need to become familiar with the system used by your credit card in order to make sure you make as much off of it as possible.  For example, if certain types of purchases will earn you more points than other types of purchases, be sure to choose your travel reward card when making those high-earning purchases.  Similarly, if your points have an expiration date, be certain to use the points before they expire.

 

Tip #3:  Get to Spending

Since you earn points for your travel reward credit card based on the purchases you make, charge as much as possible on your credit card.  If you have to make purchases that are beyond your budget and that you will not be able to pay off at the end of the billing cycle, however, place those expenses on a credit card with a lower interest rate.

When it comes to your regular monthly expenses, on the other hand, you should already be budgeted to pay those off at the end of the billing cycle.  So, place your cell phone bill, utility bills, and satellite/cable bills on your credit card.  Not only will this help you earn points on expenses you were going to pay anyway, it will also make it more convenient for you because all of these bills are consolidated into just one credit card statement.

By taking a few simple steps, you can increase the amount of rewards you earn from your travel reward credit card without losing money on finance charges.  Before you know it, you will be on that plane to your dream vacation!