The obvious trick to maximizing rewards is to maximize spending on your reward cards. Here are some tricks to getting the most from your reward cards.

Business Spending

Even frugal people get sent on business trips where they can spend huge amounts very quickly on their personal cards that are ultimately reimbursed by their company. It is difficult to spend less than $200 a day on hotel and meal expenses in most major cities, and much more than than that in some. If your company will let you, also pay for airfare with your reward card. When going out with clients or co-workers, be the first to throw down your card for reimbursable expenditures. A few extra moments creating another line on your expense reports will pay off in the long run.

Utilities

Most utilities will allow you to pay your monthly bills with your credit card, however many will charge a fee for the privileged. If the fee is greater than your reward, don’t bother.

Small Stuff

Ultimately, you want to channel all of your spending onto your cards, and the small stuff ads up quick. Charging $7 for lunch, $5 at a parking garage, or $10 for a movie ticket will result in a greater reward every day. I have even charged a few stamps at the post office.

Warnings

I once saw a movie with a teenage character who was asked if her parents knew how much she was spending on their credit card. In response she said, “It’s ok, I am doing them a favor becaue they get frequent flier miles.” Credit card companies know that people will spend more on their cards when they are geting a reward. That is one of the reasons that reward cards exist. Fortunately, when you charge everything, keep a close eye on your balance, and pay it off every month, reward cards can truly be an everyday discount on necessary purchases.

This entry was posted on Friday, September 19th, 2008 at 23:50 and is filed under Maximize your Credit Card Rewards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.