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Many people use credit cards that earn rewards when paying for everyday purchases. You won’t earn rewards when you pay with cash, so it’s smart to pay with a rewards credit card instead.
If you’re looking for ways to maximize your credit card rewards, you’re not alone. Let’s discuss five ways you can earn more credit card rewards and get more value from them.
1. Earn rewards faster with new cardholder welcome offers
Many credit card issuers promote welcome offers to attract new customers. You can earn the welcome offer if you meet the minimum spending requirements within a set period.
These offers typically provide a sizable stash of points, miles, or cash back. Take advantage of opportunities like this when adding a new rewards credit card to your wallet.
2. Choose a rewards credit card that matches your spending
There are plentiful rewards credit card options. However, that doesn’t mean every card is a good fit for you. When considering which credit card rewards to get, it’s best to consider your spending habits.
Before getting a new card, learn how it earns rewards. This will allow you to select a card that matches your typical spending to maximize the rewards you earn.
3. Consider using multiple rewards cards
Many rewards credit card enthusiasts have more than one rewards card. This strategy helps them earn more rewards. You may want to consider doing this to maximize your earnings.
Here’s an example: Let’s imagine you typically spend a lot of money on travel and dining purchases. Having a travel rewards credit card that offers 3 points per $1 on travel and dining purchases is a great way to earn rewards quickly. But if this card only offers 1 point per $1 on purchases outside of these categories, you can benefit by getting a flat-rate rewards card that offers 2 points per $1 on all purchases.
You’d want to use the first card for travel and dining spending and use the second card for other purchases so you can earn as many points as possible from all of your spending. Using two or more rewards credit cards could help you reach your credit card rewards goals sooner.
4. Pay with the card that earns the most rewards
This tip is a great follow-up to the above point: Be selective with which credit card you use to pay for every purchase. Before handing over a credit card at checkout, choose the best card to maximize your rewards.
In the case above, you’ll want to use the travel and dining credit card when dining out with friends. That way, you earn 3 points per $1 instead of only 2 points per $1 with your flat-rate rewards card. It’s worthwhile to take a few extra seconds to consider which card is best to use.
5. Choose a value-packed redemption
Finally, how you use your rewards matters. Don’t assume that redeeming your rewards from a statement credit or cash back is the best strategy. An alternate redemption choice may prove more valuable.
Here’s an example: With some travel credit cards, you can transfer your rewards to eligible travel partners. Once you do this, you can redeem them for hotels and flights. This strategy can help you trim your vacation costs. But it may also yield you more value from your rewards.
I went with this approach recently. Instead of redeeming my credit card rewards for a $1,000 statement credit, I transferred them to an airline partner. I used my points to book a round-trip business-class ticket to Europe. The cash price for my tickets was nearly $3,500. It cost me 100,000 points and $168 in taxes and fees. With this redemption, I got triple the value from my credit card rewards.
Be strategic with your credit card rewards
Whether you’re trying to earn more credit card rewards or get more value from them, it pays to make the right moves. The above suggestions can help you be more strategic. If you want to apply for a new credit card that earns rewards, review our list of the best rewards credit cards.
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