Are You Getting the Most Out of Your Credit Card?

You probably already know about the everyday convenience of credit cards - but did you know you could be getting more bang for your buck?

If you're a regular credit card user, your responsible shopping habits could be rewarding you. Aptly named "rewards program," this benefit allows you to earn points for every dollar spent on purchases you make with your credit card. In turn, these points can be redeemed for cash back or other rewards. At Honda FCU, you can earn rewards with our Visa Gold credit card.

Why (Or Why Not) Choose a Rewards Card?

Most obviously, you'd choose a rewards card because you want to earn rewards points on your daily spending. Some rewards cards may also include bonus points when you spend on a certain merchant category - for example, a travel card might earn you more points per dollar when you use it to book a flight or hotel room than if you had used a different rewards card.

At the same time, while Honda FCU's Visa Gold card comes with a low rate and no annual fees, many other rewards cards differ, with higher rates than their non-rewards counterparts. Rewards cards are also typically harder to qualify for and require a higher credit score. Plus, if you're prone to overspending, a rewards card could be a temptation you're better off avoiding.

Rewards at Honda Federal Credit Union

We've recently partnered with RAZR to deliver even better rewards to our Visa Gold cardholders. With RAZR, members can enjoy more redemption options as well as more convenient, seamless experience with the rewards program. Cardholders can view and redeem their points right within Digital Banking or use RAZR's online portal to access their rewards.

At Honda FCU, you can redeem your rewards points for:

- Cashback

- Charitable Donations

- Gift Cards

- Direct-From-Vendor Merchandise - including direct integration with Best Buy

Best Practices for Your Credit Card

Whether you're earning rewards points or keeping it simple, using your credit card right is crucial for avoiding the trap of high-rate debt.

- Avoid carrying a balance if possible. Treat your card like a debit card and try not to spend more in a month than you can pay off.

- Use your rewards wisely. Some rewards programs' points expire after a certain amount of time - and besides, you don't want to leave money on the table! Find the best deal for your rewards or simply use your points to pay yourself back.

- Don't open a new card just for a welcome bonus. How many times have you been at a checkout line and been offered a discount on your purchase if you open a store credit card? Store cards may offer their own rewards programs, but they also offer extremely high rates - plus a new card means your credit score may take a hit.

- Take advantage of situational perks. If you have multiple rewards cards, you'll probably want to use the one that gets you the most points for a given purchase. Some cards may also offer the occasional limited-time promotion thta increases the amount of points per qualifying transaction.

All in all, a rewards card is a great, flexible way to reward your good standing habits. If you're not sure if a rewards card is right for you, talk to us! We're happy to walk you through your options.