How to Save Money Using Reward Points?

Answer 1

Most of us would jump at the chance for free money, but surprisingly, many people are unaware of all the free goodies they could be getting with the purchases they are already making every day. Most banks and credit card companies offer rewards programs which allow their customers to accumulate points per dollar spent. These points can then be redeemed for a variety of rewards such as gift cards or credit card or bank account credits. Wells Fargo, for instance, has an extensive catalog of rewards and allows combination of its reward points with those of other credit cards such as Visa. It is a convenient way to keep all your rewards in one place, and cash them in for a better reward. Also, grocery stores and drugstores such as Kroger and CVS have reward programs that offer member-only discounts and the ability to accumulate points towards free products and gasoline.

It is very easy to sign up for rewards points, whether you are using your bank card or credit card. It is important to remember, however, that reward points are only accumulated for bank debit cards if the transaction is treated as a credit card purchase. Most of the time it is easy to get around this by either choosing the credit button, or pressing cancel if the card reader asks you for your pin number. Credit cards do offer more points per dollar (usually one point per dollar while debit cards will earn one point per four dollars spent) but if you sign up your debit card and remember to always treat it as a credit card purchase, you will be surprised how quickly your points will add up on your everyday purchases. Since the idea is to save money, it is a good idea to stray away from credit cards, except for emergencies anyway.

If you are a frequent traveler, you can take advantage of the reward points programs offered by hotels, airlines, and car rental agencies. Travel vendors try to woo customers by rewarding them for their loyalty, but keep in mind that you can sign up for as many reward programs as you choose and cash them in at your convenience. Of course, the more loyal you are to one company, the faster you will earn reward travel such as free or discounted flights and vacations. There are a variety of ways to earn free money just by continuing to make your everyday purchases and remembering to make them count towards earning points. The next time you get a bill in the mail that is higher than you expected, take a deep breath, and think of all the rewards points it will help you to earn. It is important to remember that reward points do have expiration dates, so make sure you check your accounts frequently so that you are able to enjoy all the rewards you have earned.