7 Ways to Take Your Credit Card Rewards to the Next Level

Rewards credit cards deliver an abundance of benefits to cardholders. They provide opportunities to earn cash back, points or travel credits, enhancing your purchasing power without incurring extra costs.

To maximize your rewards, it’s important to first establish healthy financial habits. You’re more likely to get the most value from your rewards credit card by using an informed approach.

Here are seven strategies to take your credit card rewards to the next level:

1. Understand your spending habits.
   
   Before selecting a rewards credit card, assess your spending habits. Are you a frequent traveler or do you tend to spend more on groceries and dining? Knowing where your money goes can help you choose a credit card that offers high rewards rates in specific categories.

2. Earn points quickly with sign-up bonuses.
   
   Many credit cards provide a generous sign-up bonus if you spend a certain amount in the first few months of the account. If you’re planning to make a major purchase or can shift some of your spending during this period, this is an excellent opportunity to earn a significant number of points quickly.

3. Pair cards strategically.
   
   Consider using more than one credit card to capitalize on multiple reward structures. For example, when traveling, use a card that offers high rewards on travel purchases, and use another card that provides cash back when shopping for your everyday groceries.
   
   Be sure to monitor your total spending closely—the last thing you want is to overspend just to earn more rewards.

4. Pay attention to special promotions.
   
   Credit card issuers often run promotions that provide additional rewards for using your mobile wallet, shopping at specific stores, or purchasing goods or services in a particular category. Sign up to receive promotional notifications from your card issuer to stay up to date.

5. Redeem rewards wisely.
   
   Understand the redemption options available. For instance, while some rewards credit cards may exchange points for statement credits, others may bring you more value if you choose to redeem points for travel. Sometimes transferring points to partner loyalty programs can get you the best return on your spending.
   
   Another element to consider is your spending lifestyle. Travel credits may offer a better value, but they become much less valuable if you don’t travel very often. Your likelihood to actually redeem rewards is just as important as the value.

6. Read the small print.
   
   It’s important to understand all the terms and conditions for your credit cards. Take a moment to read the document that comes with your new card (or you can usually view it online). Not only will it help you discern the value of your rewards, but it will also explain what your interest rate is and when it may increase if you have an introductory rate.

7. Pay on time and in full.
   
   Whether you choose points, cash back or travel credits, rewards credit cards can help boost your budget and extend your spending power. However, there’s one sure way to erase all the positive benefits these cards can provide—not paying your bill on time. Constantly carrying a balance can result in late fees or interest charges which can quickly wipe out any rewards earnings.

Stay informed and follow a strategic approach to maximize your credit card benefits. Spend with care and earn those rewards!