How to Win with Credit

What if we told you that there's a good chance you're leaving money on the table every month by not using your credit card for everyday expenses? You'd want to remedy that, right?

We can help! Using a credit card responsibly and developing a sound credit card rewards strategy can save you thousands of dollars every year.

Sounds good, right? Let's dive in and learn how you can win with credit.

What is the best way to use a credit card?

First, let's talk more generally about credit cards and the purpose they serve.

Credit cards are a secure way of making purchases without immediately handing over money. In simple terms, the best way to use your credit card is to do so within your means. Establish a budget, spend only what you can afford and, as often as possible, pay off your balance each month. Shop around for a card that has a credit limit, annual percentage rate (APR) and annual fee that work for your lifestyle

What should I use my credit card for?

What you use your credit card for is up to you! You can use it for groceries, gas, eating out, shopping at your favorite store or anything else you want.

Most companies offer some type of reward for using credit with them—like cash back, airline miles or discounted gift cards. These types of rewards help you get the most out of your credit card and put something back in your wallet.

How do I get the most out of my credit card rewards?

As mentioned, credit card rewards can often be tailored to suit your personal needs and interests. If you like to travel, you should look for a card that offers miles points with an airline you use, or rewards points you can redeem for travel rebates. If you're trying to tighten your budget, find a card that offers the highest cash back benefits and use them to pay toward your balance each month.

In order to maximize these rewards, you'll need to do a little research. Find out which lenders offer which benefits and how much you need to spend to earn them.

There are many different ways to earn credit card points, but the simplest way is to use credit for everyday purchases. To get a better understanding of how to use your credit card for points, let's look at a classic example—a nuclear family comprised of two adults and two children.

According to national averages, below is a snapshot of some typical monthly expenses for this family.

• Groceries: $886
• Fuel: $165
• Transportation (excluding loan payment): $296
• Utilities: $350
• Cell phone: $98
• Childcare: $832
• Streaming and other subscription services: $237

If this family put these monthly expenses on a debit card or paid cash, they would spend about $2,864 a month. If this family used a points-earning credit card, like Mountain America Credit Union's Visa Rewards credit card, they would add 2,864 points to their rewards total each month. That's 34,369 points per year! Those points can be turned into travel rebates, gift cards, event tickets, experiences or cash back.

That's the difference between using a debit card and being strategic with your spending on a credit card—you actually end up spending less with a credit card once you factor in the rewards points and other benefits.

One thing to remember—if you choose to carry a balance every month, the amount you pay in interest could reduce (or even negate completely) the value of the reward. So, pay off your credit card bill in full as often as you can to really maximize your rewards!

Ready to take control of your credit and rewards? Mountain America Credit Union can help. Contact one of our team members over the phone, in-person at a branch, or online today!