If you have reasonably good credit history and a handle on managing your use of a credit card, then you absolutely should be making money with credit card points. In order to remain competitive most credit card companies are offering some sort of rewards program. Often you don’t even need to open a new account to start receiving rewards.
The best type of rewards program pays you cash. Money can be used to buy almost anything and is a far more flexible reward then points toward travel, cars, or mortgages. I highly recommend you find a rewards program that pays you cash with no annual fee. Yes, they are out there and your current credit card company may already have it set up; you just need to ask.
Keep in mind, for the average credit consumer with a decent credit score, you should be able to find a credit card reward program that will pay you from 1% to 5% back on all your purchases. Many offer a standard 1% rate with a 5% on selected items like gas or groceries. This will give you a starting point in your search and negotiations.
The best place to start is your own credit card company. They know you as a customer and do not want to lose your business. Call the customer service number on the card itself and explain how you would like to know their current reward card options. When I did this with my Chase card, they were able to offer me their reward package and I didn’t even need to receive a new card or account. They simply switched me over.
Now, in same cases, it may take some negotiating on your part. Many people are unaware they have the option to negotiate with their credit card company. Not only can you negotiate rewards, you can also discuss interest rates and billing schedules. Start first by asking about their current reward offers and if they don’t sound as good as I previously mentioned tell your credit company you plan to look for a different card if they can’t offer you the going rate for cash back rewards.
Another negotiating tactic is to mention how much more you plan to spend each month if they switch you to a reward program. If you knew you would get 1% back each time you used your card, would you use it more? Sure you would. If you received 5% back on your gas purchases, wouldn’t you always use that credit card to buy gas? You may even want to have estimates in mind to tell the credit card representative just how much more business they would receive.
If negotiating with your current company goes nowhere, then I do recommend shopping around. But, my guess is you will get all you want and more with a simple phone call to the company who you already receive a credit card bill from each month.
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