How to Use Credit Card Rewards to Earn Savings

DENVER (KDVR) — The price of gasoline, eggs and other items continues to rise. It’s crucial to find ways to make the most of your budget, especially if you’re using credit cards.

Consumer experts tell FOX31 that what may look like a quick way to save money may actually cost you more.

bankrate.com’s Ted Rossman tells problem solvers that a credit card can be your friend or make it worse, depending on how you use it – especially when it comes to paying for gas with station rewards cards.

“It’s a trap I see people falling into. These cards only give about 5 or 10 cents off per gallon. They have very high interest rates,” Rossman said.

Credit card rewards can save money if used wisely

He recommends using a general-purpose card or a bulk store card from Sam’s Club or Costco instead, but he cautions against maintaining high balances on any card.

“If you have a credit card balance, that interest is going to outweigh the rewards, so that’s half of the cardholders paying in full,” Rossman said.

Stacking savings from various cards takes some planning, but the dividends can be worth it.

“There are many apps from gas station brands that offer 5 to 10 cents off per gallon. You can combine that with your rewards credit card or another payment method if you choose and get another discount that way,” Rossman said.

Consumer experts also recommend planning family trips and errands to limit gas use.

Plan menus for your family to make the most of bargains at bulk food stores and to adjust your budget to local price fluctuations.

Get more money-saving tips from problem solvers