How To Make The Most of Your Credit Card Rewards Points

By  //  February 22, 2023

With so many different credit cards to choose from, finding the right one can be a challenge.

And once you do, you’ll have to navigate the rewards program in a way that maximizes the points you earn. Fortunately, you can tackle these problems with a bit of research and planning.

5 Ways to Make the Most Out of Credit Card Rewards Points

Knowing the ins and outs of your rewards credit card can help you capitalize on its benefits. If you’re in the market for a new card, here’s how you make the most out of your spending.

1. Choose the Right Credit Card 

When it comes to maximizing your reward points, choosing the right card is essential. Look for a card that offers the type of rewards that fit your spending habits. For example, if you travel a lot for work, find a card that offers travel-related rewards such as airline miles or hotel stays.

The only thing more important than this step is knowing how to apply for a credit card online. You don’t have to walk into a bank to get a credit card, and sometimes online banks offer better options. Online is also the best way to get a secured credit card if you have a low credit score.

2. Charge Everything and Pay it Back

The best way to build credit with credit cards is to charge everything on them as long as you pay the balance off right away. If you don’t, you’ll be charged interest, which can prevent you from being financially responsible. You’ll want to do the same thing for a rewards credit card.

Since reward cards offer a set number of points or rewards based on every dollar spent, the more you charge on the credit card, the greater your rewards. Just don’t make the mistake of overcharging your card, as the interest you’ll incur won’t make the rewards you earn worth it.

3. Use More Than One Credit Card

Keeping track of more than one credit card can be a challenge, but it’s the best way to maximize your rewards. That’s because some cards are only valuable in certain circumstances. For example, there are credit cards that will only get you cashback up to a certain amount per year.

The more general cards should be used for everyday purchases, while people who travel once a year may only start using their travel card closer to the vacation date. If you want to travel to the Philippines on a budget, you may only need to charge a travel card for 6 months.

4. Take Advantage of Bonus Categories 

Many credit cards offer bonus categories, which are categories of spending that offer higher rewards points. These categories would include groceries, gas, travel, dining, pharmacy, and online shopping. Be sure to take advantage of special offers whenever they’re available.

Did you know that many cards offer hidden perks on top of special offers and bonus categories? These perks may be difficult to earn up to, but they’re worth it in the end. For example, some cards give you 25% more points if you book a flight online at select airlines or travel companies.

5. Redeem Your Points Wisely 

Just because you have points to spend, it doesn’t mean it’s a good idea to do so. In fact, most credit card companies won’t put a due date on when you have to spend your points. Before you book that trip to the Bahamas, ask yourself if you need those points for groceries or gas.

Many credit card companies offer a variety of redemption options, from cash back to gift cards to travel rewards. Choose the option that best fits your needs to get the most out of your points.