This Credit Card Taught Me Everything I Now Know About Earning Rewards

Choosing the proper bank card will be daunting — particularly once you’re a brand new credit score consumer. If you happen to’re able to earn bank card rewards, however don’t wish to strategize over spending classes and reward charges, the Wells Fargo Lively Money® Card provides a straightforward path ahead.

This no-fuss possibility bank card possibility earns you limitless 2% money rewards on all of your purchases. It’s one in every of CNET’s finest bank card picks, and one in every of my favorites for a number of causes. 

Right here’s how I maximize the Wells Fargo Lively Money, and how one can get probably the most worth out of this bank card.

Why I selected the Lively Money Card

After faculty, I took a while to know how credit score and bank cards work. I used to be prepared to begin incomes rewards, however I didn’t wish to lose sight of excellent credit score habits. So I upgraded my faculty card to the Lively Money to begin incomes rewards the simple method: with a flat-rate cash-back bank card. 

Flat-rate cash-back playing cards supply a set share of money again on purchases, in contrast to different playing cards which may supply larger or decrease charges by spending class. The Lively Money took the effort out of rewards technique — making it a simple option to assure money rewards on payments, groceries, gasoline and extra. 

Over time, my husband and I each used the Lively Money as a straightforward means to earn rewards and construct credit score. I added him as a licensed consumer so he might reap the credit-building advantages of paying our invoice in full every month.

We added most payments and on a regular basis bills to this card — our son’s daycare invoice, family bills and even our wedding ceremony bills. After paying the invoice in full and on time every month, it earned us $200 in money rewards in six months. And since we knew we wished to journey for much less, we flipped the money rewards to make use of towards flights to save cash.

Now that we now have the grasp of find out how to use a bank card and earn rewards, we now use a journey bank card extra usually. Utilizing the Lively Money helped me enhance my credit score to qualify for a card with higher rewards. We nonetheless use the Lively Money often, and it’s my longest-standing bank card.

Learn how to get probably the most out of your Lively Money

Right here’s find out how to benefit from all of the Lively Money has to supply based mostly on what I discovered:

Earn the welcome bonus (for those who can)

The Lively Money provides a $200 money rewards bonus after spending $500 in purchases inside the first three months. That’s roughly $167 in spending per 30 days. To earn the bonus, think about using the cardboard for purchases you’re already making, akin to groceries, payments and different every day bills. Or time your utility for the cardboard round a giant, deliberate buy to earn the welcome bonus even simpler — akin to patio furnishings or a fridge. 

In fact, it is best to by no means overspend merely to earn a welcome bonus — it’s not value it. However for those who usually spend $167 per 30 days in meals or on a regular basis necessities, it might be a straightforward requirement to fulfill.

You probably have one other Wells Fargo card, like the school card I had, as an alternative of upgrading, apply for this card. If you happen to improve, like I did, you usually aren’t eligible to earn a welcome bonus. 

Maximize money rewards 

The Lively Money is an efficient choose for those who don’t need a sophisticated bank card rewards technique with tiered or quarterly rewards since you possibly can earn 2% money rewards again on purchases. However if you wish to enhance your rewards potential, think about pairing this card with one other high-tier Wells Fargo bank card, just like the Wells Fargo Autograph℠ Card, to earn larger charges on eating places, journey, gasoline stations, transit, well-liked streaming providers and cellphone plans. Use the Autograph Card for purchases that earn larger rewards and the Lively Money for all the things else.

However you don’t have to stay to the Wells Fargo suite of playing cards. I now use my Chase Sapphire Most well-liked® Card for purchases that earn larger rewards charges, like journey via Chase Final Rewards, eating out and choose streaming providers, and my Lively Money to earn 2% money rewards on different purchases. 

Repay bank card debt or a brand new buy 

The Lively Money may come in useful if you’ll want to repay a high-interest bank card steadiness or finance a giant buy. This card incorporates a 0% introductory APR interval for 15 months from account opening on new purchases and qualifying steadiness transfers, then a variable APR of 19.99%, 24.99% or 29.99%. You’ll nonetheless earn 2% money rewards, however keep in mind that it’s vital to not tackle new debt whereas paying off excellent balances. 

Pay your mobile phone invoice with the cardboard

Although mobile phone insurance coverage is often a couple of dollars along with your supplier, the Lively Money provides as much as $600 in mobile phone injury and theft safety after a $25 deductible. Cardholders could make two claims per 12 months, as much as a most of $1,200. 

Which means you possibly can do away with your cellphone plan supplier’s insurance coverage with this card, which might prevent somewhat in your mobile phone invoice. Nevertheless, you’ll must pay your mobile phone invoice with the Lively Money card. I additionally schedule computerized funds every month for my mobile phone invoice, which helps me save much more with AT&T’s autopay low cost.

Benefit from journey perks

The Lively Money comes with two Visa Signature journey advantages that may make journey simple — 24/7 concierge service and the Luxurious Lodge Assortment. Complimentary concierge service can come in useful when planning your journey, getting restaurant reservations and delivering presents for an important day. Though the service is a cardholder perk, any further service or purchases come at a price. 

And you need to use the Visa Luxurious Lodge Assortment to select from a number of premium resorts with advantages akin to meals and beverage credit, fee ensures and room upgrades, when out there. Whereas we haven’t used both perk but, we plan to make use of the concierge service for suggestions for an upcoming household trip to save lots of us time planning the journey.

Select from quite a lot of redemption choices

I like that you’ve got a number of methods to redeem your money rewards with Wells Fargo. As an example, I’ll redeem my money rewards to pay much less on my bank card invoice — which looks like financial savings to my mind — by redeeming for assertion credit. Or I can redeem the rewards to my checking account as a direct deposit to pay for upcoming purchases like live performance tickets or to have further money in my financial savings account. 

You may also redeem the money rewards for purchases made with PayPal, for journey, charitable donations, merchandise. You may also redeem rewards for reward playing cards in $25 increments, and you may redeem rewards in $20 increments through a Wells Fargo debit card or ATM. 

We by no means used the Wells Fargo Rewards portal to guide journey as a result of we discovered higher offers elsewhere, however we nonetheless use it to check charges; then guide the journey on the cardboard and redeem the money rewards as an announcement credit score to scale back the bank card invoice — basically paying for a portion of the journey.

Is the Lively Money match for you?

The Lively Money card is a powerful flat-rate bank card that makes it simple to earn rewards with out strategizing. In case you are seeking to maximize your rewards, there are higher playing cards on the market — however the Lively Money can complement different larger worth playing cards nicely. Whether or not you’re kick-starting your bank card rewards journey or studying about credit score altogether, this card can yield further money and financial savings. Simply keep in mind to make use of the cardboard responsibly and pay it in full every month, or else chances are you’ll be on the hook for hefty curiosity expenses.

Learn extra: Is Apple’s Excessive-Yield Financial savings Account Price It? See How It Compares