A credit card can be a great way to save money as a family. While you might assume that a family should stay away from credit cards, as they can definitely lead to debt if you’re not careful, there are also many ways to use a credit card effectively for better savings. You just need to know how to make the best of them. When you’re thinking about signing up for a credit card, here are four things that you need to do to make sure you’re choosing the right one.
1. Consider the Yearly Fee
One of the first things you’ll likely think about when you’re choosing a credit card is the yearly fee. Remember, while no-fee credit cards are definitely a good option, they may not be the best for your family. Some families may benefit from a credit card with a moderate yearly fee, as the benefits you receive from these cards may actually give you more bang for your buck.
2. Make Sure You Can Get the Sign-On Bonus
If a card you’re interested in has a sign-on bonus, you need to be sure that you can qualify for that bonus. The BoA Premium Rewards card, for example, has a pretty significant bonus, with 50,000 bonus points, equivalent to a $500 value, that you can redeem for a number of rewards. To qualify, you need to make at least $3,000 in purchases within the first three months. Make sure you can hit that number to get the most out of your card.
3. Utilize All Statement Credits When Available
Statement credits can effectively nullify your annual fee. Some credit cards offer statement credits to help you cover certain purchases, and those credits can be as much as your card’s yearly fee. If your credit card has any statement credits available, make sure you use all of them. It’s the best way to make sure you’re getting the most out of your yearly fee.
4. Maximize Your Rewards Earnings
It’s important that you do whatever is necessary to maximize the number of rewards points you’re earning with your card. Check to see what categories provide the most rewards for the specific credit card you’re interested in signing up for. If you strategically use different credit cards for different purchases, you may be able to get more rewards points than if you were to just use the same credit card on all your purchases.
Families often end up needing a variety of credit card benefits, which is why a credit card can be such a useful tool for a family. However, if you’re interested in getting a credit card, you need to make sure that you’re getting the right card for your family’s specific needs. These four things are all important things to make sure you’ve thought about before you sign up for a credit card. With the information from these things, you’ll be able to get more with every credit card purchase.