In our last blog we covered how scores are calculated and how your secured credit card is a stepping stone to future lines of credit. One of those credit lines can potentially be a rewards credit card. At MSI Credit Solutions we recommend our clients obtain at least one rewards card once their credit scores increase.
Of course as with any type of credit card there is a plethora of options and how one is rewarded when making qualifying purchases. Here the question for you will be “What can I benefit from the most?” You have cards like with American Express that offer “experience” rewards. So for example if you’re a fan of Project Runway or just an overall fashionista, you can redeem 37,500 points for an evening with Carolina Herrera and Nina Garcia. You’ll also have cards that can offer flyer miles, like the rewards card that President of MSI Credit Solutions Ricardo Mendiola has. He hasn’t paid for a flight in over three years since he started building points with his rewards card! Of course there are also other cards that offer cash back or rewards with more instant gratification. I myself have an Amazon rewards card through Chase bank that rewards me with points that I can shop with at Amazon.
Along with the rewards given some credit cards can offer additional perks. Get an automated extended warranty for up to one year, so avoid spending more money next time you’re at Best Buy purchasing one of those big-ticket items. Renting a car? Get automatic car rental insurance and collision insurance. Some cards can additionally offer trip-cancellation insurance, so if you’re traveling but happen to get sick, your credit card company would reimburse any cancellation fees. Of course you would want to confirm if your credit provider offers these types of benefits as well, and you never know they could offer even more perks!
The catch here will be to make sure you are making qualifying purchases with your rewards credit card, and as we’ve discussed before be a responsible borrower. Only charge things you can pay back immediately. Don’t go “shopping happy” to earn points and accumulate interest on carried over balances, as in the long run you could actually be at a loss. Do you have any great rewards cards? Share your recommendations in the comments below!
MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.
*The information in this article has been provided strictly for educational purposes.