It’s definitely exciting to get approved for a new credit card. Many people open credit cards to enhance their creditworthiness, get extra benefits, and generally have more of a credit line available. However, if you’re planning to open a new credit card soon, you’ll want to make sure that you’re getting the best experiences with your new credit card. Here are four of the best tips to utilize so you can get more from a new credit card.
1. Plan out Your Bonus Qualifications
Qualifying for an introductory bonus can be a bit more complicated than it seems on the surface. For example, the BoA Premium Rewards card has a 50,000 point introductory reward, which requires that you spend at least $3,000 within the 90 days you first have the card open. If you don’t usually make at least $1,000 of credit card purchases in a month, this can be more difficult to accomplish. Planning out how you’re going to qualify for these bonuses can help you save more.
2. Consider Getting a New Card Near the End of the Year for Calendar Year Benefits
Certain bonuses on your card may go by the calendar year rather than resetting on the day you were approved for your credit card. If you have any bonuses on your credit card that reset every calendar year, you may be able to “cheat the system” a bit by applying for your card in October or November. That way, you’ll get to redeem two of those benefits near the beginning of your cardholding.
3. Pay Attention to Fees and Charges
Fees and charges can quickly negate the amount of benefits you’re getting out of a credit card. For example, you’ll want to pay attention to ATM withdrawal charges, late payment fees, and general interest fees. Read through all the information that comes with your credit card to make sure you don’t get blindsided by a set of fees a few months into having your card.
4. Utilize All Your Benefits Every Year
The best tip for getting the most out of a credit card is to use all your benefits every year. If you commit to using as many of your benefits as possible, you’ll truly be able to get the most out of your credit card. You may even be able to get enough benefits that it essentially offsets your yearly fee. This is why many people opt for credit cards with an annual fee over one without a fee.
There are plenty of ways to get more out of a credit card. If you’re careful with how you do it, a credit card can be a great way to help your family save even more – it doesn’t have to be something that sends you into debt. These four tips can help you save more near the beginning of opening a credit card, setting up plenty of benefits that you can use as long as you have them.