A fast way to earn credit card reward points
Posted 15 February 2008, 22:56 in Personal Finance Leave a Comment
A few days ago, UPS delivered a package that was worth $200, and it did not cost me a dime.
Thanks to the American Express membership rewards program, I was able to redeem $200 worth of gift cards to the Cheesecake Factory in a matter of months. In my opinion, American Express has one of the best credit card rewards programs out there. For every dollar that you charge, you earn a point. And for every 2,500 points earned, you can redeem a $25 gift card.
So how did I manage to earn over 20,000 points in a matter of months? By pooling points. As a Blue credit card holder, I am entitled to issue additional cards to anyone that I trust. It is much easier to pool points rather than to charge $20,000 on your own.
A few guidelines to pooling points:
Pay it off! For any credit card rewards program to work, you will need to be sure to pay it off every month. You do not want to go into debt just for gift cards — it is not worth it. Therefore, it is imperative that you pay off your balance every month.
Trust. An agreement is made between each card holder that I authorize under my account. They must have the means necessary to pay off their balance every month. You will also need to trust your authorized card holders (siblings in my case) that they will not charge extravagant things without having the funds to pay for it the following month. Remember that you are responsible for every charge that your authorized card holder makes, so handing additional cards to anyone should not be taken lightly. Or else, your credit score will be affected.
Share the reward. What better way to use your reward than to have a family gathering at a fancy restaurant paid for by American Express? Although you could use the points all for yourself, it does not give the incentive for your card holders to use your credit card. It is also an awesome way to have a nice family outing without the expense.
I stress that reward programs are only good if you pay off your balance every month. You as well as your card holders need to be discipline in charging only what they are willing to pay at the end of the month. Only then will you benefit from pooling points.
Related Links: Membership Rewards Program | Blue from American Express | Cheesecake Factory
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