If you have a credit card, there are a few tips you should keep in mind to maximize credit card points. Pay attention to expiration dates and rewards categories. Many credit cards offer a flat percentage on purchases, but rotating categories can help you earn higher percentages. Pay attention to which stores you spend a lot at, because you may be able to receive better bonus rewards from gas stations than from department stores. It is also a good idea to time your purchases to coincide with quarterly bonus categories.
Time your purchases to coincide with quarterly bonus categories
To maximize credit card points, time your purchases to coincide with quarterly bonus categories. American express gold benefits offer bonus categories once or twice a year. It’s best to check your credit card’s calendar to see what categories are on offer at a given time. For example, Chase Freedom Flex gives 5% back for purchases at home improvement stores during Q2 2021. If you’re in the market for a new refrigerator or washing machine, wait until Q2 2021 to make that purchase.
Time your purchases to coincide with bonus categories. Quarterly rotating bonus categories will change on a regular basis. Many rewards cards offer 3% cash back on certain purchases. Some rotating categories include gas stations, groceries, and restaurants. Some reward you with points per dollar spent. Points vary in value, depending on the issuer and purchase category. The highest redemption value is usually found in travel. Using a rotating bonus category can help you maximize credit card points.
Identify credit cards that offer the highest percentage of cash back for categories where you spend the most
Cash back credit cards are great for earning additional rewards, but you have to know which categories you spend most in. It’s important to remember that the bonus categories for some cards may not be very useful, but some of them offer lucrative bonus rates for certain purchases. Cash back credit cards with rotating bonus categories should be avoided because the earning rates will not match your most common expenses.
Some issuers will also give you additional cash back for spending in particular categories, such as gas. Some gas stations include an affiliated convenience store, but make sure to check which one is more convenient. Cash back cards with dining in categories may also offer you extra rewards for leading a group meal. Some credit cards offer rotating bonus categories that rotate every quarter. To maximize the rewards rate on your card, sign up for multiple cards.
Plan your spending to take advantage of sign-up bonuses
If you want to maximize the benefits of credit card sign-up bonuses, you must plan your spending to fall in line with the rotating categories of bonus points. Identify the categories that earn the highest points and make your purchases accordingly. Credit card benefits include auto collision damage waivers, extended warranties, purchase protection, and other perks. While maximizing the benefits of credit cards, it is essential to avoid excessive spending.
Don’t overspend to earn rewards
You can earn rewards by using credit cards. While they may seem appealing and valuable, overspending to earn them is likely to result in debt or high-interest charges. Instead, use a credit card to buy things you would normally buy. This way, you can use the points to buy airline tickets, which is an excellent use of rewards as long as you don’t incur high-interest charges. In addition, use the credit card responsibly and within your means.
Don’t make big purchases with your credit card. Credit card purchases may qualify for bonus points, which could add up to free money. But if you aren’t prepared to pay for the purchase in cash, you may as well use your credit card for larger purchases. Another strategy to maximize credit card rewards is to use rewards cards only when you have the funds to pay off the purchases. Pay off the balance each month to avoid interest charges and other fees.