Earning more credit card rewards requires a combination of understanding the rewards structure of different credit cards, using multiple credit cards, timing credit card use, and being mindful of the fees and interest rates. Here are some specific strategies and tips to help you earn more credit card rewards
1. Understand Cash Back vs. Points
Not all credit cards offer the same rewards, so it’s important to understand the rewards structure of different cards in order to select the cards that best align with your spending habits and rewards goals. For example, if you are a frequent traveler, a credit card that offers points or miles for travel may be a better choice for you than a cash back card.
2. Use multiple credit cards
Using multiple credit cards can help you earn more rewards by taking advantage of different rewards and benefits offered by different cards. For example, you may use one card that offers cash back on grocery store purchases and another card that offers points or miles for travel. With multiple cards, you should also ensure you are spending optimally so you maximize your earning without spending more.
3. Take advantage of sign up bonuses
Many credit cards offer sign-up bonuses for new cardholders. These bonuses can be substantial and can provide a great way to earn more rewards quickly. For example, a credit card may offer 5,000 bonus points if you spend $1,000 in the first three months of having the card. By paying attention to these promotions and timing your spending accordingly, you can earn more rewards.
4. Forget about debit cards and cash
Many credit cards offer rewards for everyday purchases such as gas, groceries, and dining out. By using credit cards for these types of purchases, you can earn rewards on money that you would be spending anyway. While the cash back rates sounds small (1-2%), they quickly add up to hundreds of dollars every year!
5. Take advantage of category bonuses
Some credit cards offer bonus rewards for purchases in specific categories such as gas, groceries, or travel. If you can find a card that aligns with your spending habits and offers bonus rewards in the categories you spend most, you can earn more rewards.
6. Use credit card rewards portals
Some credit cards have rewards portals that allow you to earn even more rewards by shopping through them. These portals can offer additional rewards and discounts on top of the rewards that you earn through your credit card.
7. Be mindful of fees and interest rates
While rewards and benefits are certainly important, it’s also important to consider the costs associated with using credit cards. Some credit cards have high annual fees, while others have high interest rates. By being mindful of these costs, you can make sure that you are getting the most out of your credit card rewards without paying more than you need to.
8. Chose the right redemption option
Once you’ve earned rewards, be strategic about how you redeem them. For example, if you have a credit card that offers cash back, redeeming the rewards for cash may be the best option. But if you have a credit card that offers points or miles, you may be able to get more value by redeeming them for travel or other rewards.
9. Find a strategy that works for you
While the tips above will earn you more rewards, they require effort and organization. You would need to maintain multiple cards, track the latests signup bonuses, open new accounts, determine which card to use for each spending category, etc… If that sounds complicated, prefer a simpler strategy and avoid bad surprises.
10. Use tools and calculators
The rewards structure of credit card can be very complex and this complexity increases as you have more cards in your wallet. Many questions arise: “Which card should I get?”, “Is card A better than card B?”, “What is the best card combination for my spending?”. The answer always depends your spending. Beyond these simple tips to earn more credit card rewards, we specialize in providing the tools to compute precisely and always recommend the optimal rewards strategy for you.