rewards credit cards

6 Ways to Automate Credit Card Payments and Rewards

Holly Johnson — Wed, 12 Sep 2018 08:00:10 +0000

Credit card rewards can seem overly cumbersome and complex, so much so that many consumers don't even bother trying to earn them. It takes a lot of work to figure out which rewards or cashback credit card would meet your needs in the first place, and even then, you still have to figure out how to use your rewards. If you try to juggle too many cards or loyalty programs at once, you can easily find yourself overwhelmed — or worse — letting your points go to waste.

If your goal is maximizing credit card rewards, but you don't really want to put in the leg work, there are several ways to make the process much more organized. Here are six ways to automate your credit card rewards and monthly payments.

1. Use AwardWallet to track your points and miles

The AwardWallet app is an online tracking service that helps you manage your airline miles, hotel points, and flexible travel points. You can join the service for free and all you have to do is add your current award accounts to get started. From there, AwardWallet will track and monitor your rewards programs and itineraries. This includes notifying you if your points are about to expire or if your point balances have changed for any reason.

The AwardWallet app claims to be tracking over 1.3 billion points and miles across over 670 loyalty programs.

2. Check out Points.com

Points.com works similarly to AwardWallet in that it promises to track your points and miles from various rewards programs for free. However, this service also lets you cash in your points and miles for gift cards for shopping or dining.

Joining Points.com is free, and it can simplify your life by letting you watch all of your loyalty accounts in one place. Once you sign up, you'll have one password and login for your programs, which is much simpler than keeping track of multiple logins and having to log in and out each time you want to see an account balance.

3. Use Reward Summit to maximize your miles

Reward Summit is another tool that tracks your points and miles. But this service focuses on the front-end of your transactions instead of helping you track rewards after you've earned them.

Here's how it works: Sign up for Reward Summit and connect your credit cards to your account. From there, the Reward Summit app will help you choose the right card for each purchase you make based on which one offers the most rewards. You can also use the app to search for nearby merchants who may dole out category bonuses you aren't sure how to maximize. Finally, you'll receive detailed reports that show how you're maximizing your rewards credit cards compared to other Reward Summit users.

If you're someone who gets tired of figuring out which of your cards would be best for individual purchases, this app is for you. Best of all, it's free to sign up and seamless to use.

4. Set up automatic credit card payments

Maybe you're not overly worried about losing track of your points and miles, but you are worried about getting into credit card debt. In that case, it makes a lot of sense to automate your credit card payments to ensure you are never late and never wind up carrying a balance.

Fortunately, most banks will let you set up automatic payments on or before your due date. While this strategy can take some getting use to, automating your credit card payments can help you avoid debt no matter what.

5. Use rewards cards only for recurring expenses

Another strategy to consider if you're leery of overspending is using rewards cards only for recurring expenses you can automate on both ends. This means you would set certain bills to be paid automatically — like utilities, cable bills, phone bills, and insurance. On the other end of the spectrum, you would set up automatic payments with your bank so these bills would be paid automatically by their due date.

The benefit of this strategy is threefold; not only are you paying bills with credit you were going to pay anyway, but you're having your bill paid automatically and earning rewards in the process. This strategy is easy to set and forget, and it will help you avoid overspending on regular purchases.

6. Treat your credit card like a debit card

Another way to automate your credit card purchases and payments while avoiding debt is to sign up for a service called Debitize. This service offers "credit card perks without credit card debt," and actually pays your credit card bills for you straight out of your checking account.

The best part about the service is that it's free. After opening an account, all you have to do is link your credit card accounts with your checking account. From there, you'll use your credit cards as usual and let Debitize make regular withdrawals to cover your charges over time.

The fact this is all automated means you get to earn rewards and take advantage of credit card perks like guaranteed returns, extended warranties, trip cancellation/interruption insurance, and travel accident insurance without worrying about credit card bills. Since the amount you spend will be withdrawn from your checking account regularly, you'll feel like you're using debit.

Like this article? Pin it!

This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

What Is a Rewards Credit Card?

Jason Steele — Wed, 22 Aug 2018 08:00:10 +0000

The credit card industry is intensely competitive, and profitable. In order for them to remain profitable and attractive to consumers, banks and credit unions offer cards that return something of value for each dollar spent. These credit cards have come to be known as rewards credit cards.

What rewards cards offer

A rewards credit card will give the customer a percentage of their spending as cash back. Depending on the card issuer’s rewards program, the cash back can be received as a statement credit, a bank deposit, or a credit to purchase gift cards and merchandise.

There are also travel rewards credit cards that offer rewards points or miles. This kind of loyalty program may be offered by the card issuer, or it may be with a co-branded partner such as an airline or hotel chain. Customers are then able to redeem their points and miles for a variety of rewards through that company. For example, credit card points can be redeemed for free stays in a hotel, while airline miles can be redeemed for award flights according to the airline’s frequent flyer program. (See also: Cash Back vs Travel Rewards: Pick the Right Credit Card for You)

But cash back and points aren't the only perks card issuers offer. Many cards come with a welcome bonus as an incentive to open a new account. Typically, these offers require you to meet a minimum spending amount to receive the bonus. For example, some cards offer 50,000 points or miles after spending $3,000 within three months of opening the account.

These credit cards will also offer extra rewards for your spending. Some cards offer a fixed amount of points, miles, or cash back on all purchases, while other cards will offer increased rewards on purchases from select merchants or categories. And some cards will cap the amount of bonus rewards you can earn each quarter or year. (See also: The Best Cash Back Credit Cards)

How to get approved for a rewards credit card

The most competitive rewards credit cards are offered to applicants with the strongest credit history and the highest credit scores. Someone who is new to credit cards, or has had credit problems in the past might not qualify for a premium credit card that offers the most valuable rewards for spending.

However, there are some rewards credit cards that are offered to those with good or average credit, rather than excellent. In fact, there are even a few subprime and secured rewards cards designed for those with poor credit that still offer nominal rewards. The rewards these cards offer won’t be as generous as those from cards offered to applicants with excellent credit, but it's better than nothing.

What are the annual fees for rewards credit cards?

Rewards credit cards can have no annual fee, or they can have annual fees of hundreds of dollars. Since many credit card users would prefer not to pay an annual fee under any circumstance, credit card issuers will typically offer several rewards credit cards with no annual fee.

There are also premium rewards credit cards that have several levels of annual fees. There is a large market for credit cards with annual fees of under $100, including cash-back cards, and those that offer points and miles with airlines and hotels. Next, there are the premium cards that offer annual fees above $100, with several of these products charging annual fees of $450 or more.

How points and miles work

Many credit cards offer rewards in the form of points or miles, and these artificial currencies can be generated by the card issuer or one of its co-branded partners. Some card issuers also allow their rewards to be transferred to points or miles with airlines and hotels. With most rewards credit cards, however, the card issuer will allow you to earn points or miles with a third party, such an airline, hotel chain, or retailer.

Once you receive those points or miles, they are now in the account of the third-party partner, not the credit card. You will retain those points or miles even if you cancel your card, and the rewards are now subject to the terms and conditions of the company that they are with. You will be able to redeem your points and miles according to the terms of that program, and the points you earn from your rewards credit card will be added to any other points you have. For example, if you earn airline miles by traveling on a certain carrier, you could also earn miles from using their co-branded credit card. The miles from both your travel history and your credit card rewards both go into the same frequent flyer account, and you will retain these miles even if you decide to close your credit card account.

Like this article? Pin it!

This article is from Jason Steele of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Steps to Getting a Free (or Close to Free) Vacation in 9 Months or Less with Credit Cards

Nick Wharton — Thu, 28 Jan 2016 19:05:27 +0000

Do you want a free vacation at the end of the year? Of course you do! Follow these five simple steps and within nine months, you'll have earned enough rewards points from your new credit cards to reward yourself with a little vacation.

Before going ahead with this plan, you should know that the higher your credit score and spending habits, the faster and more efficiently you'll be able to collect your rewards. But don't worry! You don't have to be a big spender with an outrageously high credit score to do this. It may just take you slightly longer to execute.

1. Know Your Credit Score and Make Preparations

Signing up for multiple credit cards in a short period can temporarily lower your credit score, so timing is everything. It's important that you only do this when your credit is strong. Otherwise you risk being denied for one or more of the cards and your plan will be ruined.

Basically, make sure you haven't applied for any credit for three months before you start and plan to not apply for any credit for three months after you've completed it. This is especially true of big credit applications like mortgages and lines of credit. Don't worry, your score will recover (and likely be even better) after a few months with the new cards.

2. Research and Find the Right Cards

People have been signing up for multiple cards to bundle bonus points since credit card companies started paying people to join their clubs. It's a very simple idea, but takes research, discipline, and commitment to actually pull it off properly.

First, figure out where you want to go. Look up the number of points it will take for you to travel to your destination. Which airline has the best deal for award flights? Which hotel?

Then find the credit cards that either offer a bonus in the loyalty program you want, or points that allow you to transfer to them. Look at the co-branded credit cards available for the airline and hotel you want. Then look at other travel rewards cards to see if that airline and hotel is a partner program that you can transfer points to. Add up all the bonuses and find the combination of cards that will get you the number of points and miles you need.

For example, this might mean signing up for an co-branded airline credit card, a hotel credit card, and one or two additional flexible spending travel rewards cards.

The key here is to make sure you know which airlines will take you where you want to go, and then find the corresponding cards that you can use for those airlines. Co-branded airline credit cards are easy — the miles will already be in the airline program you want. Other travel rewards cards will offer points that you can transfer to partner airline programs, and still others will allow you to apply your points as statement credit (you purchase your travel and then use points to pay for it). All of these options have pros and cons (statement credits allow you to have the most flexibility — you can book with whatever airline or hotel you want — but with airline miles you can usually get a higher value ticket than a straight points to dollars conversion).

3. Calculate the Spending Requirements

Once you've narrowed down the list of cards that will give you the specific miles/points you need, you need to break down each card's spending requirements to find out how much you'll have to spend to get your bonus points. Each card will require a certain amount in purchases within a period of time in order to qualify for the bonus. Calculate the spending requirement over the number of months (usually 3 months) and decide whether you have enough normal expenses you can put on the credit card to cover that amount. Then spread out your applications so you only need to deal with one card's spending requirement at a time. List all those automatic payments and subscriptions and make sure you update those to your new card.

Now I'm not advocating you go on a spending spree to get your free vacation. In order for this to truly be "free" you need to already have that much in monthly expenses that you can charge to a credit card over those months. This is why you shouldn't sign up for all these cards at the same time. You'd be stuck with trying to spend thousands per month in order to get the bonus if you were approved for all the cards at once.

If it looks like you can meet the spending requirements without overextending yourself, then you can move on to the next step.

4. Apply for the Cards

As mentioned earlier, the better your credit score, the better your chances of being accepted for all of these cards. You are entitled to one free copy of your credit report each year from AnnualCreditReport.com, so take advantage of it. Once you've confirmed that your credit is strong enough, it's time to start applying.

Remember, depending on your monthly expenses, you may need to stagger applying for these cards three months at a time. If you don't meet the spending requirement, you do not get the bonus points!

If you get denied, you can still call the provider and plead your case. Usually the rejection letter will include a reason why you were denied. If you have been told that you have too many credit cards with the same issuer, offer to close one account or lower the credit limit on one of them.

5. Set a Spending Schedule and Book Your Flight

Once you're approved, use the new card for your expenses and monitor it to make sure you are on track to meet the requirements. You can even set alarms for yourself to ensure that you're reaching the spending goals. Once you've met the requirements, it may take one or two billing cycles for the bonus points to appear.

Once you have all your points, it's time to plan your trip. To book your flight, you'll need to make the appropriate points transfers to the airline and hotel programs of your choice. Then use the program's system to book with your points.

Note that the cards with the biggest bonuses often have annual fees. You'll want to make sure that these are cards you actually want to keep even with the fees — you can continue to rack up miles and points with these cards for your next free vacation.

Recap

Let's quickly go over the information that we've covered in this article.

Check your credit score and ensure that you're in a good position to apply for multiple cards.
Plan carefully by choosing the best credit cards based on their sign-up bonuses.
Calculate the rewards that you stand to earn.
Apply for the cards.
Keep organized and set a spending schedule to ensure that you meet the minimum spending requirements on each new credit card.

It's worth noting that when paying for a flight with points, you'll still need to pay some taxes and fees. Which is why your vacation is likely to be "close to free" instead of 100% free. You can also check out these 10 flight booking hacks to help make up the difference. (See also: 12 Expert Tips for Redeeming Miles for Free Travel)

This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Cash Back vs Travel Rewards: Pick the Right Credit Card for You

Jason Steele — Tue, 24 Mar 2015 13:00:09 +0000

Should you earn cash back rewards or travel rewards from your credit card? Frankly, it is a question that is nearly as old as reward cards themselves, and the answer has always been "it depends." Here's a breakdown of the ins and outs of the world of rewards credit cards. Now, you can decide which one will get you the biggest bang for your credit card buck. (See also: Ask These 7 Questions to Choose the Perfect Credit Card)

Of course, you need to be aware that rewards are only rewarding if you pay off your balance in full each month. Otherwise, the interest that you accrue on your balance will always be much more than the rewards you're gaining.

But if you're itching to get into the credit card rewards game, here's everything you need to know.

When You Should Choose Travel Rewards

Earning and redeeming travel rewards can be extremely complicated, so the ideal reward card user should be someone who is willing to put in the time and effort to deciphering their favorite airline and hotel programs. While earning free travel sounds like an amazing deal, some cardholders may find it frustrating trying to redeem the miles or points they've accumulated.

Earning Travel Rewards

Most travel rewards credit cards will offer bonus points or miles for spending in travel categories, like airfare, car rentals, hotel stays, dining, and entertainment.

Value of Travel Rewards

Travel rewards offer the opportunity to get a higher value for each mile or point earned. Rewards are most valuable when redeemed for international flights in business class, expensive last minute flights, and luxury hotels. These points and miles are less valuable when used for domestic flights in economy class, especially when travelers have the ability to book flights with plenty of advanced notice. (See also: These Credit Cards Have the Best Travel Redemption Value)

But when points and miles are redeemed strategically for high value award flights and luxury hotel stays, then it is often possible to receive three to five cents in value per point, which is much better than the best cash back reward cards.

Redeeming Travel Rewards

The opportunity to redeem award travel is different depending on the credit card and loyalty program it is connected with. Some credit cards guarantee no blackout dates or restrictions when booking an award flight or stay. Others only offer a limited number of seats or stays for those redeeming rewards. Others, still, will simply allow you to redeem a statement credit for any travel purchase you make. How you prefer to travel will be the determining factor for which program to join.

Co-branded airline or hotel cards will allow you to directly use your miles to redeem award flights or stays through the loyalty program connected to the card. Many times you can book travel with their partner airlines and chains as well. General travel cards might require you to book travel through their portal or allow you to transfer points to the available programs.

It can be very hard to redeem airline miles for flights during peak travel seasons, so these programs are not very well suited to those who only travel during the holidays. Furthermore, some avid travelers who have particular travel requirements aren't very well served by traditional airline frequent flyer programs. For example, someone who wants to take shorter flights on routes with healthy competition will never receive much value from 25,000 miles on a flight that might only cost $100-$200. In addition, large families will usually be frustrated in their attempts to find more than two or three award seats available at the lowest mileage levels. Also, those who don't like to stay in large, chain hotels aren't going to have much use for hotel points. Finally, those whose schedules preclude searching for award seats months in advance will also find their miles to be less valuable.

Travel Perks

A big benefit of travel rewards cards are the included travel perks. For frequent travelers (or those who simply hate the discomfort of travel), perks like priority boarding, status upgrades, lounge access, and free checked bags may prove to be valuable on its own.

When You Should Choose Cash Back

For many credit card users, even some who love to travel, cash back credit cards remain their best option. First, you can always use cash back to pay your rent, mortgage, or other bills, something that is impossible to do with airline miles or hotel points. In addition, you can save and invest your cash back, which allows it to grow over time. In contrast, frequent flyer miles and hotel points invariably lose value over time as companies change their award charts. And while some travel rewards cards offer points redeemable for travel purchases, if you don't end making travel purchases, you may not be able to use your hard earned points at all.

Earning Cash Rewards

Many cash back cards offer bonus points in general shopping categories, like groceries, department stores, and gas. They may also have a shopping portal that offers extra points for shopping with their partner merchants.

Value of Points

While the best travel hackers are able to get anywhere from three to five cents per point, cash back points usually have a one cent per point value. While the opportunity for point value is lower, cash back programs are simple and cardholders are guaranteed a predictable rate of return from their credit card rewards, without having to decipher loyalty programs or search for award availability. For those who have trouble redeeming their travel rewards, they run the risk of getting no value from the points they've accumulated.

Redeeming Cash Rewards

Redeeming your cash rewards is usually as simple as getting a statement credit or direct deposit into your account. Some require a minimum amount before redemption. You may also have the opportunity to redeem gift cards or products. (See also: 7 Biggest Credit Card Redemption Mistakes)

Shopping Perks

Many cards offer invaluable perks for shoppers, like extended warranties, purchase and price protection, and credit monitoring services.

Reward credit cards offer valuable points, miles, and cash back for your spending, but choosing the best reward card is not that easy. By considering the type of travel you prefer, you can decide if travel rewards or cash back card are right for you.

Which Type of Rewards Is Right For You?

Are you the kind of credit card user who wants to sit back and wait for their rewards to accumulate, and then easily redeem them? If so, then you are best off using the most competitive cash back rewards credit card, and then using some of your savings for travel when necessary. But if you are the kind of person who dreams of business and first class travel, or someone who occasionally has to book an expensive flight with little advanced notice, then it might be worth it for you to play the travel rewards game with frequent flyer miles and hotel points.

See our picks for best credit cards:

Like this article? Pin it!

This article is from Jason Steele of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Best Credit Cards With Airline Companion Tickets

Kris Majaski — Fri, 24 Aug 2012 10:36:40 +0000

An often overlooked travel rewards credit card perk is a compantion ticket — a free or discounted ticket for someone traveling with you on the same flight. A few credit cards still offer this elusive reward. However, it is important to note that all companion tickets are not created equal. Let's take a look at the top credit cards that feature an airline companion ticket offer. (See also: The Best Travel Rewards Cards)

Southwest Rapid Rewards® Premier Credit Card

The Southwest Rapid Rewards® Premier Credit Card does not offer companion passes directly; it just makes it faster to earn one. First, new cardholders can earn up to 75,000 points. Also get 6,000 points after your Cardmember Anniversary. These points count toward the 110,000 points necessary to earn a companion pass that is valid until the end of the following year.

Unlike other passes that are only good for one ticket, once this Southwest pass is earned, travelers can use it for unlimited free travel for a companion on both paid and award flights. So if you buy a flight for yourself, or redeem points for an award, your companion flies free. Therefore, the value of this pass is limited only by the amount of traveling you do. There is a $99 annual fee for the card.

Bonus offer: Earn up to 75,000 points. Earn 40,000 points after you spend $1,000 on purchases in the first 3 months your account is open. Plus, earn 35,000 points after you spend $5,000 on purchases in the first 6 months your account is open.

British Airways Visa Signature® Card

The British Airways Visa Signature® Card offers cardholders the opportunity to earn a free "Travel Together" ticket when they spend $30,000 in purchases on their British Airways Visa card within a calendar year. When booking an award flight operated by British Airways, the Travel Together ticket can be redeemed for a second seat for no additional points and is good for two years. Unfortunately, the second person will have to pay additional taxes and fuel surcharges. Since these charges can equal the cost of a coach ticket, using this companion certificate only makes sense when flying in business or first class. Cardholders also earn 3 Avios for every dollar spent on British Airways purchases and 1 Avios on other purchases. There are no foreign transaction fees and the annual fee is $95.

Bonus offer: New cardholders can earn 4 Avios per $1 spent on all purchases within your first year up to $30,000 in purchases. That's up to 120,000 bonus Avios!

Miles & More World Elite MasterCard

The Miles & More World Elite Mastercard offers an annual companion ticket after the first purchase, and each year after that. Cardholders earn two miles per $1 spent on airline partner tickets, and one mile per $1 spent on other purchases. Miles can be redeemed for flight awards and upgrades on Lufthansa, Austrian Airlines, Brussels Airlines, SWISS and other partners. There are no foreign transaction fees. There is an annual fee of $89.

Bonus offer: Earn 20,000 bonus miles when you make your first purchase and pay the annual fee. Then, earn an additional 30,000 award miles after you make $5,000 in purchases in the first 90 days.

Applying for a credit card with a companion ticket offers can be a great way to slash your travel costs nearly in half. By focusing on the best offers out there, and dismissing the ones of questionable value, you can ensure that you will not be disappointed when it comes time to book that half price vacation with your favorite travel companion.

The information related to the British Airways Visa Signature® Card and the Southwest Rapid Rewards® Premier Credit Card has been collected by Wise Bread and has not been reviewed or provided by the issuer or provider of this product or service.

This article is from Kris Majaski of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Buy and Sell Airline Miles

Amy Lu — Fri, 05 Aug 2011 10:36:06 +0000

Most airlines these days have frequent flyer programs where you can use your accumulated miles to redeem rewards, often in the form of flight tickets. (See also: The Cheapest Way to Fly to Europe)

It's great when you earn enough miles to pay for free trips, but you don't necessarily have to wait for your miles to build up before you reap the fruits of your miles. You can also buy, sell, and transfer frequent flyer miles to get a deal you want.

How to Buy Miles

You can purchase miles directly from an airline by visiting their rewards program page. (For American Airlines, it's AAdvantage; for Delta, it's Sky Miles; British Airways has the Executive Club, and so on.) Simply hit the "Buy Miles" link, and they'll walk you through the process.

The cost of miles varies from airline to airline. For example, Delta's miles cost 3.5 cents per mile, while American Airlines sell theirs for 2.5 to 2.75 cents per mile. Generally, buying miles only makes sense when you're just shy of a goal and you buy only enough miles to reach it. You don't want the value of your purchased miles to exceed the value of the ticket.

Another way to buy miles is through coupon broker sites. Now, buying and selling through a broker violates the policy of most airlines, but it's not illegal (except in the state of Utah). However, if you're caught, the airline may confiscate your ticket, cancel your reservation, and wipe out the accumulated miles in your (and the seller's) frequent flyer account.

If you're willing to take the risk, start by visiting the website of a coupon broker. The broker acts as the middleman between you and the seller. The broker will ask for your contact information, your preferred travel dates, service class (such as business or first), airline, and the price you're willing to pay per mile. Once the broker matches you with a seller, and all parties agree to the terms, the broker will ask you for your rewards account number. When the broker receives your payment, the seller will transfer the miles to your frequent flyer account.

If all goes well, any purchase (or sale) through a coupon broker should look like a simple transfer from the airline's point of view.

How to Sell Miles

It's great when you can get a free trip out of your miles…but what do you do when you don't want your reward? Even if you don't want your points, someone else might.

Airlines don't like it when their customers sell miles, so if you want to convert your miles to cash, we're back in violates-policy-but-not-illegal-except-in-Utah territory.

If you want to sell your miles through a coupon broker, you first need to provide your contact information. The broker will also ask for the number of miles you want to sell (most require a minimum amount), the name of the airline, the expiration dates, and your asking price per mile. When they find a buyer, you'll transfer your miles to the buyer's account. You receive payment when the transaction is complete.

You can cut out the middleman by selling directly to your friends or family. It works just like a transfer, except that you'll receive money, gifts, or free labor for the miles. This method may not flag the airline's attention, but there are other risks involved — especially if the buyer can't find seats for the trip they want. (See also: How to Score a Frequent Flyer Rewards Flight)

How to Transfer Miles

Airlines allow you to give your miles to family, friends, and even charities, provided that the recipient also has an account with the airline. Simply click on the "Transfer Miles" link on the airline's rewards program page and enter your account information, the recipient's information, and the number of miles you want to transfer.

Even though you're freely sharing miles that you have already earned, don't assume that sharing the miles is free. As with buying miles, airlines charge a processing fee for transfers.

Other Ways to Use Your Miles

In order to compete with other reward programs, airlines have had to make their frequent flyer miles more flexible. Nowadays, if you don't want to use your miles on a plane ticket, you can apply them to another part of your trip. Airlines will allow you to redeem rewards for hotel accommodations, rental cars, vacation packages, Broadway show tickets, gift cards, and more. (See also: How to Save on Travel Accommodations)

To redeem these other rewards, you may need to go through Points.com. This website allows you to manage and exchange your reward points between their partnered programs. Their partners include several large airlines, such as Delta, JetBlue, Korean Air, and American Airlines. They're also partnered with Best Buy, Hilton, CVS, Wells Fargo, Swagbucks, and other retailers. While the site is free to join, transaction or processing fees still apply and will vary. Some airlines may also restrict how you can use the miles in their program.

The exchange rate on Points.com may also be an issue. You won't find a 1:1 exchange here; a good chunk (if not most) of the value of your miles will be lost, guaranteed. Then again, sitting on miles that you won't ever use doesn't help much, either. It can be worth your while to make an exchange if there's a reward that you want and can use.

Maximizing Miles Through Credit Cards

One of the best ways to earn and maximize miles is through travel rewards credit cards. These cards typically offer new cardholders sign-up bonuses of 30,000 miles and more, depending on the card issuer and the current bonus offer. Although you usually need to meet a specific spending requirement to earn these bonuses, they can be worth hundreds of dollars in airfare or cash if you decide to sell or transfer them. In any event, if you already plan on making a large purchase, it's worth making sure you get the best sign-up bonus available.

In addition, travel rewards credit cards allow you to earn more miles when you use your card for certain types of purchases. For example, co-branded travel credit cards offer double or more miles for each dollar spent with a particular airline or hotel property, with all other purchases earning, at least, one mile for each dollar you spend. There are also travel rewards credit cards which award bonus miles for everyday purchases like gas, groceries, and dining out, which can end up being an easy way to rack up extra miles just for buying the items you would buy on a regular basis anyway.

Final Tips on Buying and Selling Airline Miles

No matter what you do, there will be a processing fee. The fee varies from airline to airline and depends on the type of transaction (buy or transfer), as well as the number of miles involved. Remember to factor in the processing fee (and taxes) when you calculate the costs.
Most airlines set caps on the number of miles you can buy, receive, and transfer per year, per account. Check the terms and conditions of your rewards program to make sure you don't exceed the limit.
As with most electronic transactions, there's a delay before you see the purchase or transfer (or sale-transfer) reflected in your account. It can take 1-3 days to process a transaction, so plan any last-minute trips accordingly.
Most transactions involving frequent flyer miles are non-refundable.

Click here for the best travel reward card offers.

Click here for the Ultimate Credit Card Guide.

Like this article? Pin it!

This article is from Amy Lu of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Perform a Credit Card Rewards Annual Review

Elizabeth Lang — Tue, 25 Jan 2011 13:00:54 +0000

In my mail this week I received a “Rewards Guide” from two of my credit card companies. These guides are brightly colored, well-laid out catalogs explaining all of the rewards available to me. In looking through the catalogs, I realized that there was a lot I didn’t know about my cards. (If you’re wondering what types of rewards your card might offer check out the Ultimate Guide to Credit Card Rewards.

As part of annual financial planning, it seems that a good plan is to conduct an annual credit card rewards review.

1. Look at Reward-Program Information to Find New or Unnoticed Rewards

Here are some things I learned in browsing the catalogs I received and the actions I will take from learning them:

One of my cards gives an “annual bonus” in November, which essentially puts the rewards at 1.25%. My action: Check to see if I got this bonus and how much it is for.
There are bonus offers up to 15% at various stores I frequently shop at for one of my cards. My action: See if these bonus cash-back purchases are only for online or for in-store too. Then make a mental note to use that card when shopping at that store.
One card only gives additional travel bonuses for the first $5,000 spent on travel. My Action: Check to see if I went over this limit last year and start using a different card if that is the case.
One card gives me extra bonuses for dining at restaurants for an additional $25/year. My Action: Check to see if last year I would have earned enough in extra bonuses to make this worthwhile. (To check this see #2 below.)

2. Review Annual Statements to See If You Are Using the Right Cards

Each year my credit card companies send annual statements of how much I spent in various categories. Look through yours to see if you are really spending money on the cards that will give the best benefits in those categories.

3. Consider What, If Anything, You Will Do Differently This Year

If you find that there is a reward with one card that you aren’t taking advantage of, or that you are always using a certain card that isn’t giving you many rewards, make a conscious mental note and do something differently this year. Maybe that means leaving a useless card at home, or changing your Amazon account to charge to a different card.

I don’t advocate that you spend an entire day conducting an annual review of your credit card rewards, but the amount of both money and hassle you can save by using the right card and the right time can add up. So take an hour from your day, see how many rewards you are earning, and figure out if you can do anything differently this year.

This article is from Elizabeth Lang of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Worst Holiday Credit Cards

Ben Edwards — Mon, 06 Dec 2010 14:00:20 +0000

Here are three fictional cards you definitely don't want this holiday shopping season — and their real-life counterparts that you might want in your wallet instead.

Santa's Sleigh Miles Card

Terms & Conditions — Free flight to anywhere in the world where Santa's sleigh stops. Only good one night a year. No carry-on bags allowed due to limited space. One-way ticket only. Limited number of seats available; first come, first serve.

Do you ever feel like your travel rewards card has restrictions like this that make it hard to redeem the points you earn? Certainly this fictional card is an extreme example, but as the airlines struggle with profitability, their reward programs seem to get less flyer-friendly.

It's hard to find a frequent flyer program that doesn't have blackout dates, because those high-travel days are when the airlines make a big chunk of their money. But you can look for cards that have a simplified rewards redemption policy. Find a card that has no blackout dates or seat restrictions, and easy to follow instructions for redeeming an award flight.

If you're tired of building up miles without being able to use them, one thing you could look into is using your rewards perks for other things when you travel, rather than a free flight.

Something else to keep in mind: Check for promotions when signing up for travel cards. Especially at this peak travel time of the year airline credit-card rewards are being handed out in pretty generous chunks.

Ebenezer Scrooge Charity Card

Terms & Conditions — For every dollar spent, 1/10,000th of a penny will be donated to the charity of your choice. Bah Humbug!

Of course, there's no such thing as a Scrooge charity credit card, but some affinity cards sometimes pay low enough rewards they feel that way. The nice thing about charity credit cards is that the money you earn in rewards will automatically go to the cause you want to support.

Unfortunately, the amount you earn on most of these cards is less than you can earn with the top cash-back rewards cards. One alternative is to use the cash-back card instead and send the money in yourself. If you decide to use this approach, you'll want to see whether the cash-back card applies it as a statement credit on your card or actually sends you a check that you can cash and mail in as a donation.

One of the benefits of an affinity card, like one from the Sierra Club or The Nature Conservancy, is that you show support for your cause every time a salesperson swipes it. The design and logo may be eye catching and have the potential to strike up a conversation and help raise awareness.

If you use a cash-back card instead, you won't have your organization's logo on the card. However, there are other ways to display your support (tote bags, pins, bumper stickers) while also earning more money for your cause.

Rudolph Red Card

Terms & Conditions — Card will light up and glow a fog-piercing red once you've exceeded your Christmas budget. In addition, it plays Rudolph the Red Nose Reindeer non-stop until you've paid off your holiday purchases.

Public embarrassment from this made-up card isn't what any of us would choose, but if it would help us stay on budget, maybe it wouldn't be such a bad idea. There are a few options if you’re worried about spending over your budget this holiday.

Set up alerts for spending limits and payment due dates. Don't let the holiday activities make you forget about watching your budget or sending in a payment. It's easy to lose track when your routine gets disrupted.

Hopefully this has given you a few pointers and options to help you maximize card rewards and minimize holiday debt this shopping season. There are a lot of holiday credit-card promotions going on for the shopping season that can earn you bonuses for signing up and spending. Be sure to look at how you earn and redeem rewards and which are best for you.

This article is from Ben Edwards of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: