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8 ways to maximize your credit card rewards

By WTOP Staff

Make your rewards card work for you.

Credit cards tend to offer reward programs as a way to separate themselves from competitors. So for every dollar you spend, you may get points to redeem for merchandise, or you may receive cold, hard cash back. But are you actually getting the rewards you signed up for? A 2011 study from Colloquy and Swift Exchange concluded that on average, one-third of the rewards from credit cards go unused. To ensure you’re using your rewards card to its full potential, here are some tips from experts:

Pick a rewards card that matches your lifestyle.

For example, if you don’t travel often, an airline rewards card won’t do much for you. “No matter how great the rewards are, if it doesn’t suit your lifestyle and the way you spend your money, it probably doesn’t make much sense to have it,” says Beverly Harzog, author of “Confessions of a Credit Junkie: Everything You Need to Know to Avoid the Mistakes I Made.”

Meet the minimum.

Many cards require a minimum amount of money to be spent during the first three months of ownership before the rewards kick in. John Ganotis, co-founder of Credit Card Insider, suggests this method for spending that minimum quickly: “You could buy a $1,000 gift card from Amazon.com and put it in your Amazon.com account and make your purchases throughout the year. It’s basically like you’ve prepaid for your items and are getting the rewards on your credit card.”

Read the fine print.

Not everyone does this, Harzog says. “You need to read all of the terms and conditions or you might spend money, thinking you’re getting rewards when you’re not,” she says. She notes that some cards offer a certain percentage of cash back until you’ve spent a certain amount, at which point either the cash-back offer ends or the percentage of cash back is lowered. Your points may also expire on a certain date, so if you aren’t watching, you could lose those rewards.

Don’t overlook the card’s other perks.

For instance, many cards offer purchase protection so if something you buy is lost, stolen or destroyed, you’ll be reimbursed, or at least partially reimbursed. Other cards have price protection, so if you buy a refrigerator for $1,900 and you see the same one for $1,200 a few weeks later, you may be able to get your credit card to refund the difference. “A lot of people overlook those benefits completely,” Ganotis says, citing travel insurance as another example.

Periodically reacquaint yourself with your rewards program.

Rewards points may expire if you don’t redeem them by a certain date. And many rewards programs change from quarter to quarter during the year, so during one season, the more you spend, the more you’ll save on gas, but then the next season, the more you spend, the more you’ll save on groceries. Harzog suggests taking a look at the program every time you scrutinize your credit card statement, which should be at least once a month.

Mind the annual fee.

It may make sense to get a card with an annual fee, and it may not. “Some cards don’t charge an annual fee during the first year, and keeping them open longer than that can throw off their value proposition,” says Odysseas Papadimitriou, CEO of WalletHub.com and CardHub.com. “Other cards charge annual fees but offer significant enough rewards to warrant doing so.”

Use your card responsibly.

This always makes smart financial sense, but it’s particularly relevant if you’re using credit cards to get rewards. For instance, you shouldn’t carry a balance. “If you’re paying interest on your purchases, you’re pretty much canceling out the value of the rewards,” Ganotis says. And avoid late fees, too. The fee and possible higher interest will negate the rewards you’re earning, and some cards will dump your rewards points for the month if you make a late payment.

If you have questions, call customer service.

“We’re seeing a lot more companies investing in their customer service departments,” Ganotis says. In fact, you’ve probably noticed the slew of bank and credit card TV ads bragging about their courteous treatment of customers. Apparently, companies are realizing that it isn’t good for business to hide behind automated voices and a menu of numbers. So feel free to call customer service and ask about your rewards points. Because when it comes to how these programs operate, if you don’t pay attention, you will pay for it.

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8 Ways to Maximize Your Credit Card Rewards originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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