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Having a credit card expands your options in many ways. It lets you make everyday purchases quickly and easily. It also helps build credit and empowers you to work towards something bigger, like financing a home or automobile.

Did you know there’s a way to add more value to your purchases? It’s known as using a credit card with a rewards program.

This article will cover the basics of a rewards program and what you can do with one. You may soon realize that having rewards at your disposal can make even everyday spending a thrilling experience.

Before diving in, we highly recommend reading up on sustainable credit card use, and the do’s and don’ts of credit card spending.

A Brief Introduction to Rewards Programs

Most credit cards that offer rewards work like this:

• Make purchases with the credit card as usual.
• Receive “points” that go into a rewards balance.
• Redeem the points by logging in to your credit card servicer’s rewards portal.
  

How many points do you get per purchase? It depends. For instance, First Florida’s Diamond Rewards Visa^® Credit Card lets you earn 1 point for every dollar spent on purchases.

Not all credit cards are the same, and each servicer has a different approach to incentive programs. Verify that the credit card you want has a rewards program, and review its terms and conditions carefully.

Now that we have an introduction to the program, let’s review some of the most common incentives these credit cards offer.

Pay Yourself With Cashback

Cashback is one of the most popular features of a credit card rewards program. It’s a pretty straightforward perk. You trade your points in for actual cash.

The rise of online and mobile banking has made it even easier to redeem points for cashback. After setting the amount you’d like to be rewarded, you can transfer the money directly to a checking or savings account.

It’s great to have money to spend on other purchases. However, there are a few neat things you can do with cashback. For instance, you can transfer your cashback rewards to add a cushion to an emergency fund or other savings account.

Use Statement Credit To Pay for Purchases

It’s good to treat yourself or your loved ones every so often. Why not let your reward points foot the bill? Many rewards programs offer statement credit, allowing you to get ahead of your card balance.

Statement credit is similar to receiving a refund or rebate for a purchase. By trading in enough points for statement credit, it can feel like you’ve received something for free.

Using points for statement credit is a handy way to manage your card balance. Just be sure to apply the credit before your statement drops.

Fill up Your Gas Tank

If you drive a lot or love to travel, your rewards credit card can be one of your best companions. A credit card rewards program can help reduce transportation costs or traveling expenses depending on its offerings.

Chances are, your automobile is a big part of your life. Fuel is one of the most significant expenses related to car ownership. The cost of gas varies wildly and can shift from day to day. 

Rewards programs offering “fuel with points” can reduce transportation expenses. You can redeem points at the pump by using your credit card at a participating gas station.

Remember that where you can redeem points for gas depends on your rewards program and who it has partnered with. Of course, even if you fill up at a non-participating gas station, you can still redeem your points for a statement credit.

Plan a Trip With Points

Do you have travel plans? If you’re flying or looking for a hotel, you already know that shopping around for the best deal is part of the experience. You may have some go-to booking sites in mind. What if we told you your credit card might offer a good deal?

Some credit card rewards programs have a travel portal where you can:

• Book flights and cruises
• Reserve hotel rooms
• Rent automobiles
  

On top of that, you can use your rewards points to cover the costs.

Booking with points can potentially give a great deal. So, the next time you plan your vacation or holiday getaway, check out your rewards program to broaden your options.

These four perks are just a sampling of how much credit card rewards can make everyday purchases more valuable. If you’re looking for a new credit card, finding one with this program might be an excellent place to start.

Make your daily spending a rewarding experience with First Florida. Check out our Diamond Rewards Visa Credit Card, which offers all the above perks and more, including a points shop for merchandise, gift cards, and event tickets.