How to Get the Most Out of Your Credit Card Rewards

By incorporating a few straightforward habits into your everyday spending, you can make the most of your credit card rewards without complicating your financial life.

In this article, we’ll explore practical strategies to optimize rewards with our best credit cards, helping you earn valuable perks while staying within your budget.

1. Choose the Right Cards

Align Cards With Your Spending Habits

Different cards offer different perks. To take advantage of your credit card's best rewards, select cards with the highest reward rates for your primary spending categories. For a detailed comparison of two popular flat-rate options, check out Chase Freedom Unlimited vs Wells Fargo Active Cash.

For example, the Blue Cash Preferred Card from American Express offers 6% back at US supermarkets (up to $6,000 per year), making it ideal for families. The Citi Double Cash Card's flat 2% on everything (1% when you buy, 1% when you pay) suits those wanting simplicity.

Consider Sign-Up Bonuses

Many cards offer impressive sign-up bonuses for new cardholders who meet minimum spending requirements. Chase Freedom Unlimited, for example, provides a substantial sign-up bonus after spending a certain amount in the first few months.

These sign-up bonuses are a fantastic way to kickstart your rewards. However, be wary of cards with a minimum spending requirement outside your everyday spending habits.

Focus on Relevant Perks

Some cards offer perks just for being a cardholder, in addition to rewards for money spent. For example, the Blue Cash Everyday Card offers cash back on US streaming services, while the Blue Cash Preferred adds transit rewards and enhanced streaming benefits. Finding these niche categories is a great way to turn spending into cash back at an accelerated rate

Other perks from providers could include travel perks like cell phone insurance, lounge access, or free bags. Focus on finding perks you'll use to get the most out of your card.

2. Use Your Cards Strategically

• Make it automatic: Set your credit card for recurring bills like streaming services and subscriptions to automatically earn rewards on expenses you'd pay anyway.
• Look for utility opportunities: Check if your utility companies accept credit cards without processing fees. These regular payments can accumulate significant rewards over time.
• Match your spending: Use specific cards based on their bonus categories—your grocery card at supermarkets, travel card for flights, and dining card at restaurants.

3. Automate Your Rewards

Even the best credit card rewards can't outpace the interest rates you'll pay from carrying high balances monthly or fees from missed or late payments. Your card should work for you and not add to your stress.

• Set up automatic payments: To avoid missed or late payments, set up autopay to pay the minimum due amount, the entire balance, or a monthly custom amount.
• Enable alerts: Most credit cards offer spending alerts that enable you to stay on budget and monitor spending effortlessly.
• Transfer your points: Many credit cards allow you to automate your points transfers to loyalty programs or redemptions for statement credits. This lets you make the most of your points without adding transfers to your to-do list.

4. Take Advantage of Sign-Up Bonuses

Sign-up bonuses aren't guaranteed, but some cards have them to sway new cardholders to try them. Sign-up bonuses can give you significant points or miles boost quickly, but they usually come with minimum spending requirements.

The allure of sign-up bonuses can be hard to fight, but only sign up for a card where you can easily qualify for the bonus without overspending.

5. Use Shopping Portals and Partner Programs

Credit card companies usually have online shopping partner programs accessed exclusively through their shopping portal. You can earn extra points or miles on purchases by purchasing things you would buy anyway through their portal.

Plus, some cards have bonus points or miles for spending at certain retailers. You can enroll in dining rewards programs or add deals to your card to get additional points on purchases made at participating retailers.

6. Redeem Wisely

Maximize Redemption Value

While redeeming rewards for statement credits or credits at your favorite retailer might be tempting, pay attention to redemption values. For example, travel credit card rewards usually have the highest redemption value when transferred to a hotel or airline partner.

To maximize redemption value, find the transfer or credit that gives you the biggest payoff for your points or miles. For instance, with the Citi Rewards+ Card, you can earn extra points on certain categories and redeem them effectively for travel or gift cards, maximizing your rewards potential.

Avoid Low-Value Redemptions

Merchandise and gift cards are usually the lowest-value redemption options. There may be a promotion in certain instances, but overall, these won't give you the most value per point.

7. Stay Informed

Regular Account Reviews

Credit card companies make money from the interest they charge you on your balances; they regularly offer special promotions to encourage you to spend more.

Periodically check your account, even if you have automated payments and points transfers, to find special offers and promotions, such as bonus points for spending in specific categories or targeted spending goals.

Review Benefits

Just because a card works for you today doesn't mean it will work for you in the future. You should periodically review your card's benefits to ensure that it's still the best fit for you and that you're maximizing all the available features. This simple audit can help you identify any unused card benefits and decide if the card is still worth its annual fee.

Key Takeaways for Effortless Rewards Maximization

Integrating simple strategies into your spending habits can make earning rewards effortless. For those just starting, our guide explaining what credit card rewards are can help. Always pay your monthly balance in full to avoid interest charges and prevent financial stress. Stay informed about your financial situation, card perks, and rewards updates to ensure you’re using the best rewards credit cards for your spending habits.

Editorial disclosure: The credit card offers and information presented on this page are current as of the published date. However, credit card terms, including APRs, fees, and promotional offers, are subject to change without notice. Some offers listed may no longer be available or may have expired. Please refer to the issuer's website for the most up-to-date terms and conditions.

This content is not provided by the issuers. Any opinions expressed are those of BestMoney alone, and have not been reviewed, approved or otherwise endorsed by the issuers.