Rewards Strategy

Okay, you've qualified for a "rewards" account with a major credit card. What's next? Congratulations, first of all. Second, keep your account in good order and avoid forfeiting those glorious rewards. See previous posting, Protecting Rewards and Your APR.

We all love little perks, right? Whether it's the free apple pie after dinner at your local dive, a free drink from the chummy bartender or even a discount on the cable, everyone appreciates a little love now and then.

If you don't already have a credit card with rewards, you can check the options at any of your major banks. I recommend shopping around and looking at the rewards structure. If you're looking at a miles account, do your miles expire after a certain period, are there blackout dates or seat restrictions? (You do want to fly first class, right?) Also, can you fly any airline and anywhere in the world? These are all things to consider when shopping around for a miles card. See this link or visit the website of your favorite large bank, http://www.creditcards.com/.

Once you have that rewards account going, you may want to maximize its potential to secure the greatest rewards. What's that mean? Use your card to your heart's delight.

If nothing else, follow my strategy: move your household bills to that account to have them paid automatically on the due date. Then, instead of writing a check or sending e-payment to your power company or your trash collector, send the payment to your credit card company to avoid finance charges. You're still paying your bills, but by another method, and now you're reaping rewards. That can quickly add up. I'm looking at about 700 miles a month using this strategy and considering moving my used truck payment on there as well- another 300 miles a month.-SH