5 Smart Ways to Maximize Your Credit Card Rewards

Reward credit cards have benefits that cash and debit cards don’t. You can avail bonuses and discounts on specific categories of purchases. Through these rewards, you can manage your budget and spend better. How, though, can you maximize your credit card rewards?

Here, we will talk about 5 ways in which you can maximize your credit card rewards.

1. Use Your Rewards Credit Card for All Purchases

One way to maximize your rewards is to use the card for all purchases. This is because most rewards credit cards provide a set number of points for each dollar spent. Hence, the more you spend, the more points you receive.

This, however, does not mean that you start spending extra. You should only utilize the card for items you would purchase regardless of the rewards.

2. Pay Your Bill Timely to Avoid Interest Charges

Another thing you need to do is to avoid interest altogether. When you pay your credit card bill late, you will need to pay interest. This is a good move towards financial stability. Often, this interest takes up most of your rewards, making the bonuses useless.

You should pay back the money you spent immediately or right before the due date.

3. Pick the Right Card

To maximize credit card rewards, you should also pick the right card. This means choosing a card that offers bonuses in categories you spend the most on. 

For example, if you don’t travel often, there’s no point in picking a card that mostly has travel-related rewards. The card you choose needs to match your spending habits. This way, you will be able to spend more and earn greater rewards.

4. Keep Multiple Cards

As mentioned, different cards provide rewards for different categories. To maximize rewards, you need to keep multiple cards, each of which offers bonuses for different products.

An example could be to have a card such as the Citi Double Cash Card, which applies to all purchases, and also having a few specialty cards that apply to certain purchases. If your primary card provides a 2% bonus on purchases, but a specialty card offers 3% on a purchase, you can simply switch to the other card for that purchase.

5. Keep Track of Categories the Bonuses Apply to

Again, the purpose of this is not to spend extra on specific categories. It is to know what products or services you can get discounts and bonuses for. This way, when you’re buying something you would have bought anyway, you can use the credit card that offers rewards for that purchase.

A particular card may have a higher cash-back for a product than another. Some cards may even require you to renew your subscription regularly. Knowing the details of your cards will therefore help you to maximize your rewards.

To Sum it Up

You can maximize your credit card rewards by staying aware of the categories they apply to, paying your bills on time, picking the right card, and maintaining a good credit score. You should also keep multiple cards and use your reward credit card for all purchases. You should not, however, overspend just to gain rewards.

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