Do you still feel it worthwhile to pay for purchases with your rewards credit cards? It seems issuers of rewards credit cards are taking great pains to offer rewards programs — but the rewards now come with many strings attached. For instance, rewards items seem to be priced higher and your ability to earn points is lower.

But although you may have to jump over more hurdles, there are still ways to profit from rewards credit cards. Below are a few ways to boost your return.

• Review your spending habits. To maximise the accumulation of rewards points, you need to calculate the amount you spend on your rewards credit cards each month. Your rewards cards and spending habits may not align. According to a major financial services research group, spending below $1000 a month on your card is not worth your while.  To get the most out of rewards credit cards, you should charge at least $12,000 a year on your plastic. If the sums don’t add up for you then it may be that the best credit card for you is actually another card type.

• Choose rewards programs that suit your interests. When you do a credit card comparison, you realise that there are four types of rewards credit cards: frequent flyer rewards, general rewards, cash-back rewards, and instant rewards. If you are a regular traveler then your may benefit from frequent flyer credit cards but there would be little point if you don’t have a need or desire to fly often. If you’re concerned with maximising your budget, you might be better off having cash-back rewards credit cards or similar cards that reward you for purchasing goods you need to buy regularly.

• Cancel rewards cards that are not benefiting you. If you think you can earn more points by having several rewards credit cards, then think again. You may be best to focus your reward earning efforts on a single card instead of spreading your spending across a range of cards. Or, you may be charging more spending onto rewards credit cards whose advantages are inferior to others. If your wallet is full of credit cards then you may need to compare credit cards and decide which ones should get the axe.  Cards with higher interest rates and expensive annual fees may have to go first.

• Check the fine print. If you have not read the fine print on the rewards credit cards agreements, then you may be thinking that there is no expiry in your rewards program. While that used to be the rule, it is now common practice in the industry to set an expiry date on accumulated rewards points. Before you apply do a true comparison and check out the fine print.

• Avoid carrying a balance from month to month if possible. If your not paying you statement in full the high interest charges will quickly exceed any benefits gained from the rewards. This is particularly true if you want to earn points towards a frequent flyer program. If, however, you cannot pay off the entire balance each month but would still want rewards credit cards to be part of you, you may have to settle for rewards programs offering cash-back or instant rewards.

Rewards credit cards are now on offer from all issuers. The question used to be whether to obtain a rewards credit card or not, but things have changed. It really comes down to the card that will fit your spending and lifestyle best in terms of the rewards on offer but also the costs involved from the interest, fees or any special conditions or restrictions. By doing some good credit card comparison and planning your spending you can boost your return from rewards credit cards.

Article by Richard Greenwood Manager of compareyourbank.com.au