Spending more to obtain credit card rewardsSpending more to obtain credit card rewards is one of the worst financial strategies that consumers could follow. Spending more usually means that you do not have the cash to pay the credit card bill. When the credit card statement arrives, the due date is clearly shown. If you cannot repay the balance by the due date, consumers are charged anywhere from 15% to 30% interest. Any savings in sales or rewards will quickly be used up in interest charges.  Sure, you have your reward. But it would have been cheaper not to buy the item at all. Perhaps purchase the reward itself instead of trying to obtain enough points to gain the reward.

Spending More to Obtain Credit Card Rewards – The Right Way

Credit card rewards can be worthwhile, provided you only purchase what you need. Always charge your purchases to the credit card and pay the full balance on the due date. Once you need to pay interest, you have lost any savings from the original purchase. Perhaps your item will cost more than the total price due to the interest charges. Credit card companies are counting on you to miss your payment to begin billing interest charges. In addition to collecting a commission on every sale from the store owner, they make billions from consumers by charging interest on overdue accounts.

Credit card rewards can be very lucrative, significantly, if they save you money for something that you would do anyway. For example, a card that provides rewards for travel to places you were planning to go anyway can be a good deal if the rewards cannot be used for something you like and enjoy, cancel the card and get one that meets your needs.

Be patient. If used properly, the rewards will build over time and save you money in the long run. Whatever you do, avoid spending more to obtain credit card rewards!