Top 10 Ways to Maximize Your Credit Card Rewards
We already understand that there are many benefits to a credit card, such as buying something you need and paying it before the next cut-off date. But did you know that if you are intelligent and careful while considering your day-to-day purchasing, you can get quite a lot out of your card? Here are the ten best ways to benefit from your credit card rewards and enjoy those perks.
1. Aligning Your Spendings and Credit Card Rewards
If you are a frequent traveller, does your credit provide frequent flier miles on your ticket and hotel purchases? In retrospect, what purchase benefits or points does your card provide?
You can go for cards and accounts that help you save money in daily activities like groceries, eating out, paying for gas, utilities, etc. Certain cards don't have specific payment returns and instead have cashback in general. This type of card is best for those with different purchasing activities who want to benefit from all of them.
2. Do You Need Your Card?
You may need more benefits from your card, and the annual fee is too much. You may have multiple cards and want to eliminate the one you must use regularly. No matter the case, you can either close the card or change the product to which the card is categorized.
It is best to discuss his changing of cards with the customer care reps and whether you need to perform a formal application. The only drawback you might face for changing is that you won't receive any signup bonus or schemes this time.
3. Signup for Marketing Emails
Sometimes, there are limited-time offers during different seasons, and if you are not up to date, you might miss them entirely. You can connect with a representative and sign up for regular updates via email so you are current on the latest deals.
Most companies market different deals and new endeavours to boost their customers' purchasing and thus can receive such deals.
4. Optimize Your Card Spending
This optimization benefits those holding multiple cards, as they can determine which card offers which benefit. This way, they can spend on something they want and get cutbacks from a particular card. Cards like Blue Cash Preferred Card will provide a discount if you spend up to $6,000 a year. A flat 6% cashback is a great option.
Similarly, the Wells Fargo Active Cash Card will offer great options for grocery shoppers. Each time you make a purchase, you get 2% cashback, no matter the amount.
5. Follow Quarterly Bonus Cards and Categories
You can also benefit from cards like the quarterly updated bonus. Sometimes, it's on electronics, and sometimes it will be on groceries. If you have cards like Chase Freedom Flex, you can activate a quarterly bonus and get the best deals. You can also max out different bonuses by purchasing for friends and family while reaping the benefits together.
6. Combining Points
For this combination to work, you must have multiple cards from the same card-issuing entity or company. Most of the time, specific categories allow you to combine bonus points. You can then quickly redeem these points to get a much bigger reward that wouldn't have been possible with a single card.
For example, the Chase Sapphire Preferred Card allows you to share points with Chase Freedom. One can earn cashback rewards, while the other can earn bonus points.
7. Learn to Read the Terms and Conditions
Sometimes, different cards have a fine print written in the terms and conditions. It would help if you were wary of what rewards you want to earn through bonus points. For example, it is more complicated if you are shopping at a grocery store and considering earning points via that is more complex.
You should check which superstores or brands will help you activate the grocery shopping bonus. It could be for major stores like Walmart or Target.
8. Strategically Timing Your Big Purchases
Knowing your significant spending in the coming months, you can check which cards will align for the best benefit. Most cards provide a welcome bonus, so you can hold off your purchase until you can get that card.
You can also plan for the next quarter's update of the bonus category and make the necessary purchases to get the maximum rewards.
9. Look For a Retention Offer
If you have multiple cards, you can stop one card you aren't benefiting from and pay the annual fees. But before you go toward terminating that card, it is always good to talk to an agent about retention offers. Many companies prefer to avoid hunting for new customers and want to retain their regular customer base.
They might have a good retention offer that might upgrade your card or waive the annual fee entirely. It never hurts to try and find out.
10. Keep Track of Your Points and Cards
The final and best tip is keeping track of your spending and rewards. Different banks and cards share information with you regularly through email or bank apps. If you understand your shopping habits and how many points you get from them, you can make a proper plan for the subsequent few purchases.
You can visit their redemption portal or rewards page to see which one costs how many points. This way, you are always ready to balance the points. When you want to make a significant purchase, you can easily do it and have the best time.
Another way is to make a spreadsheet where you input the data regularly and summarize the balance. This method can help you get an overview of how far off from your goal you are.