Using Your Credit Card to Your Advantage

If you pay your credit cards off (in full) every month why not use a credit card that gives you a reward? Use the bank's money for a month instead of your own. My husband and I have an Alaskan Airlines VISA and we charge EVERYTHING on our VISA. We carry cash, but rarely spend it because we'd rather earn our airline miles. Next January we're flying non-stop from Seattle to Kauai first-class using our miles. And, we already have enough miles to fly first class to Kauai again in 2010. We have the Alaska Airlines VISA for a couple of reasons -- we live in the Seattle area and it's Alaska Airline hub and every year we get a $50 Companion Fare Certificate, which means one person pays full airfare and the other person gets their ticket for $50. We do pay an annual fee, but it's worth it to fly first class non-stop to Kauai!

You're probably thinking I sound like a commercial for Alaska Airlines and you're right! I LOVE my card and recommend it all the time. But, you should get whatever Rewards Credit Card that works for you. There are lots to choose from and many of them don't charge an annual fee. For a list of Rewards Cards with detailed information visit CardRatings.com .

Last week I had coffee with my friend Sunny Kobe Cook, Founder of Sleep Country USA and asked her why she likes her American Airlines VISA. Sunny loves her American Airlines VISA credit card because the amount she charges on her credit card counts toward qualifying miles for Gold and Platinum status. Most airline credit cards (including Alaska Airlines) don't offer this benefit. Sunny is permanently Platinum, which means she gets preferred preference in upgrading, doesn't have luggage restrictions, boards the airline first and a host of other benefits.

Sunny's tip for using Reward cards is to go though your checkbook for the past couple of months to determine what bills can be charged. You can probably charge your utility bills, cable TV, home phone, cell phone and even your insurance bill. That's excactly what we do and let me tell you -- it adds up quickly. But REMEMBER -- you must pay your credit card bill off EVERY month -- no exceptions! Otherwise, you won't be getting the reward -- you'll be giving the credit card company the reward by paying them interest. And, they love it when you pay interest.

Warmly,
Marcia

Comments

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