If you have signed up for a rewards credit card, it is important to use it every now and then so that you can accumulate points and earn cash back rewards. Cash back rewards can range from in between 1% – 5%. Some credit cards offer a flat cash back rewards for all your spending while others offer a cash back rewards for rotating bonus categories that changes every quarter.

If your rewards credit card has a rewards program in place, you will be able to earn rewards points. You must accumulate up to a certain amount of rewards points before you will be eligible to exchange them for a reward such as merchandise, and travel statement. Redemption of the rewards points can make it cheaper for you when you are shopping for gift on a holiday season or special occasion.

For a travel credit card, the rewards points can be frequent flyer miles that you can use to exchange for 50%-100% of the price of a plane ticket. Many rewards credit cards also provide signup bonus when the minimum spending requirement is met within a set timeframe. The signup bonus can worth $50 – $250 which will be useful for getting a discount in your travel purchases.

If you are traveling, you can use your rewards credit card to pay for your car rental and get insurance protection. This prevents you from having to spend money to purchase car rental insurance. Some cards also offer extended warranty coverage for merchandises that you purchased at the qualifying stores.

One of the advantages of rewards credit card is that it allows you to go shopping with a peace of mind. If you carry cash in your wallet during shopping, people will pay attention on your wallet. With a credit card, you just need to file a report and the credit card company will suspend the card to prevent any transaction from taking place.

Nowadays, it is very convenient to use a card to do your shopping because the majority of online and brick and mortar merchants accept debit/credit card for payment. Card with no foreign transaction fee charges is suitable for use in shopping when you are overseas. In addition, you also get fraud coverage for up to a certain amount in case someone attempts to use your card fraudulently to make a purchase.

Another benefit of using your rewards card regularly is that you will get to build your credit score. Most rewards credit cards will report your payment activities to 2-3 credit bureaus so you should see an increase in your credit score within a period of 6 months if you consistently pay your bill on time.