These days, reward programs are as integral to credit cards as interest rates and monthly balances. In fact, according to Affinity Solutions, nearly 45% of all credit cards are linked to some kind of reward program. From travel perks like holiday packages and rental cars to gift certificates and cash back, Canadians have eagerly embraced these incentives.
A recent RBC payment survey conducted by Ipsos Reid revealed that more than half (58%) of Canadians have a credit card tied to a reward program. The survey also found that 88% of credit cardholders use their cards to pay for travel, and over half (53%) use them for retail purchases.
However, despite the appeal of these programs, the RBC survey also uncovered that 20% of reward cardholders sometimes forget to redeem their points. Others struggle to navigate the complexities of a reward program’s thresholds and earning rates.
The good news is that making the most of your reward card is easier than you might think. RBC experts share these tips on how to optimize your credit card rewards:
1. Consolidate Your Spending
Forget about juggling multiple cards. “One of the easiest ways to maximize your rewards is to consolidate all your spending onto one card,” advises Anna Judek, RBC’s senior manager of card products. By doing this, you can accumulate rewards or cash back much faster.
2. Think Outside the Box
Don’t limit your credit card use to big-ticket items. Using your card for everyday expenses like groceries, gas, dining out, gym memberships, newspaper subscriptions, and clothing can help you earn rewards at a quicker pace. However, the key is to spend wisely. It’s never a good idea to rack up purchases just to collect points. As Sean Amato-Gauci, vice president of RBC Credit Cards, notes, “If you never carry a balance and always pay your bills on time, you can make your card work for you by using it frequently for all kinds of purchases and expenses.”
3. Look Beyond the Rewards
Reward points shouldn’t be the sole reason for choosing a credit card. Other features, like purchase security, extended warranty insurance, and zero liability fraud protection, can add significant value to a card. These benefits can complement the reward program and make your card even more worthwhile.
4. Read the Fine Print
While offers like 5% cash back on all purchases might sound tempting, it’s crucial to delve into a credit card’s earn rates and thresholds before signing up. “With some reward programs, points can expire, so you need to remember to use them or call the card issuer to request your rebate,” warns Amato-Gauci. Additionally, some credit card companies automatically send your rebate when you reach a certain threshold or credit your account at the beginning of each year. To avoid any surprises, make sure you understand the details of the program by reading the fine print.
By following these strategies, you can maximize the benefits of your credit card’s reward program, making it work harder for you. Whether you’re accumulating points for your next vacation or earning cash back on everyday purchases, a little attention to detail can go a long way in optimizing your rewards.
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