Six Ways to Maximize Credit Card Rewards

You’ll never have to choose the newest, shiniest credit card because it’s the one you see in an ad or promoted online. Instead, choosing the right rewards credit card comes down to how you can earn valuable perks on your everyday expenses—no matter what that looks like. Here’s how to make the most of your rewards credit cards, and what to look for when buying a new one.

Use your card for all eligible purchases

Pay as many expenses as possible with your rewards card, but always within your budget. This includes current bills, groceries and other regular expenses. Have a clear understanding of the benefits your credit card offers: reward categories, bonus multipliers, and any partnerships or connections that could increase your earnings.

Meet minimum spending requirements

If your card offers a sign-up bonus, make sure you meet the minimum spending requirements within the specified time period to receive the bonus. And on the other hand, make sure you always pay off your balance in full every month. Otherwise, any interest will outweigh your reward.

Leverage Bonus Categories

Keep an eye out for rotating or seasonal bonus categories and use the appropriate card to maximize your points or earn cash back. Be sure to set a reminder to activate new bonus categories every quarter, otherwise you’ll miss the cash back window. To stay on top of changing categories, write down in your phone the best times to make different purchases.

Stack of rewards

If you have multiple credit cards that offer different rewards for certain categories (e.g. dining, travel, groceries, etc.), use the card that offers the highest rewards rate for a specific purchase. For example, if one card offers 4x points on dining and another offers 3x points on travel, use the appropriate card for each type of spending. You can also combine credit card rewards with store loyalty programs, online shopping portals or dining programs to earn extra money.

Use strategically

Understand the value of your rewards and choose redemption options that provide the most value. This could mean transferring points to travel partners or waiting for redemption bonuses.

Likewise, be sure to take advantage of benefits like travel insurance, purchase protection, or airport lounge access to maximize the value of your card.

See also the accompanying maps. Some rewards programs offer multiple cards that can be used together to earn and use points more efficiently.

Or, if you have a small business or side hustle, business rewards cards may offer additional earning opportunities.

Keep track of your rewards

Keep track of your points or miles to ensure they don’t expire, and stay up to date with any changes to your card’s rewards program. Remember: Saving points may seem responsible, but you probably shouldn’t hoard them .

If you’re applying for multiple cards, spread out your applications to minimize the impact on your credit score and take advantage of sign-up bonuses when you need them.

The key here is to stay organized: keep track of which card to use for different purchases, when the annual fee is due, and when rewards expire. Review your cards annually to make sure they continue to fit your spending habits and offer competitive rewards. If they don’t match your habits, it might be time to buy a new card .

How to choose the right bonus credit card

• Evaluate your spending habits: Find a card that matches where you spend the most money. If you travel frequently, a travel rewards card may be right for you. For everyday purchases, a cashback card is more suitable. Here we break down the differences between cash back, points and miles cards .

• Evaluate the reward structure: compare the level of earnings on different cards. Some offer flat rewards on all purchases, while others provide higher rates in certain categories. Choose a structure that maximizes your compensation based on your spending structure.

• Consider the sign-up bonus: Many cards offer significant welcome bonuses for new cardholders. Compare these offers, but make sure you can meet your spending threshold without exceeding your budget.

• Consider the annual fee: Weigh the benefits of the card against any annual fee. Premium cards often have higher fees but may offer more valuable perks. Make sure the rewards and benefits outweigh the costs.

• Check international transaction fees. If you’re traveling internationally, look for a card with no international transaction fees to save on purchases abroad.

• Pay attention to additional benefits: Many rewards cards come with additional benefits, such as travel insurance, purchase protection or airport lounge access. This can significantly increase the value of the card.

• Check your credit score: Rewards cards typically require good to excellent credit. Know your credit score and apply for cards you’re likely to qualify for to avoid unnecessary hard inquiries on your credit report.

• Read the fine print: Pay attention to details such as the APR, balance transfer fees, and any restrictions on earning or using rewards.

• Weigh your redemption options: Some cards offer more flexibility in rewards redemption than others. Again, you should consider whether you prefer cashback, travel miles, or points that can be transferred to various loyalty programs. You want to choose a card that fits your financial goals. If you’re saving up for a specific trip, an airline or hotel co-branded card may come in handy. For overall savings , a cash back card may be more suitable.

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