This page was originally published in early 2024 and reflects the author’s financial decisions during that time. The rest of the article has since been updated.
My life hasn’t been the same since I first started Reward Credit Card.
Now all my purchases need to be cashback or points redeemed, and I will not regain less than 2%. If you don’t have points, you don’t like to book a trip. If I’m going to spend, I’d like to know how much I can make.
What started with a single reward credit card in 2020 has evolved into the strategy we use today. And I hope it will continue to grow and change, just like my life and the expenses that come with it. But for now, here are the strategies I use to maximize credit card rewards:
I adjust my card to suit my spending
Here’s the first point that’s really important: you can’t really Maximize your credit card rewards If your card doesn’t suit your expenses. If you have a store card from the store, do you barely shop? Cashback Card With the Grocery Store Bonus category, it’s hard to get rewards when you eat out most of the time. It is also important to make sure you are not spending solely on earning rewards. This is because you cannot compete with the debt burden of your credit card, which you cannot repay each month.
So before applying for a credit card, be sure to know exactly what its location in your strategy is and how it fits with current and expected normal spending.
For example, my card rewards are usually one of two buckets: Travel or Savings. I try to pay for my vacation with as many points and miles as possible. My cashback helps save money on large purchases. So here’s a glance at how I fit my card into my spending:
Pay your credit card bill in full
This is not a very exciting tip, but without it, earning rewards is pointless. Typically, it’s unlikely to consistently earn 5% or 5x points on reward credit cards Credit card interest rate It’s currently about 20%. Carrying your balance easily offsets your reward revenue.
Credit card debt It’s the enemy that maximizes credit card rewards. The only exception is 0% APR Credit Card. For example, I have discovered cashback for discovery for several months since I used it to serve an apartment. The card offered a decent intro APR period, so I didn’t pay any interest during that intro period and lost cash to it (the current ongoing rate of the card is 18.24%-27.24% Variation APR).
Please remember that the intro APR is only valid for the length of the promotion period. Plus, beware of you Credit usage rate (How much balance will you keep compared to available credits). If you use 30% or more of your available credits, you can compare and consider your credit score until you pay off your balance.
I get a sign-up bonus – when it makes sense
Welcome offers provide you with the best opportunity to score a large number of points. I try not to give you such opportunities as much as possible.
I didn’t get this chance with Quicksilver as that card was an upgrade from Capital One Platinum Security Credit Card For me.
However, I made sure to get the Venture X intro offer. It was 100,000 miles at the time ($1,000 worth of travel). Currently, you can earn 75,000 miles (or $750 when redeemed for a trip) to spend $4,000 in the first three months.
In 2024 I won the Savor Bonus. A $200 cash bonus to spend $500 on a purchase within the first 3 months on your card. I have already transferred this reward to Venture X. Here you will be waiting for the next trip to book.
I book the airfare with Capital One Venture x
Venture X is me Travel credit cards I chose this because it makes it easy to earn and redeem travel rewards.
This card offers $300 per year credits for trips booked through Capital One and a 10,000 miles anniversary bonus (values $100 when redeemed for a trip). They insist on taking advantage of these benefits annually, as they completely offset the $395 annual fee on their cards. Needless to say, Venture X earns 5x miles on flights and vacation rentals booked with Capital One Travel.
So, whenever I need to buy a plane ticket, I also use Venture X.
So far, I have booked six trips with a card of 1 cent per point. Some of them were booked with miles and cash combinations. They are not immune to inflation, so I try not to stock up on rewards.
If you’ve already spent $300 in annual credits, you don’t even bother booking outside the travel portal when you find a better deal elsewhere. This card allows you to use miles on recent travel purchases. This is what I do in such cases.
I book a hotel with a chase sapphire
I think Chase Sapphire preferred my hotel card. This allows you to book a hotel stay at a value of 1.25 cents per 1.25 cents (unless I choose) via the issuer’s portal, without worrying about your transfer partner.
I used to have it to compare American Express® Gold Card. I booked a hotel stay via the travel portal and got just 0.7 cents worth. None of the three hotel partners from the publisher worked for me. We didn’t have 0.7 cents per point or hotel stay. The trip was spontaneous so I didn’t save money in advance.
I don’t realize I’m in such a situation because Chase Sapphire is preferred. I like the robust value that applies to all portal bookings. Additionally, the card offers annual statement credits of up to $50 for hotel stays purchased through the Chase Travel portal.
I use card perks
The value of a credit card is not just about rewards. For example, I wanted travel perks so I signed up for Capital One Venture X. I signed up immediately Priority Passand now I’m stopping by the airport lounges as much as I can. I have Global Entries and TSA Precheck. I also got a rental car upgrade because I used President Hertz’s circle status (registration required).
However, not all benefits are flashy. As an example, I don’t get a problem using Instacart Perks from Chase Sapphire Preferred. My free Instacart+ membership was up to $15 per quarterly statement credits, and with a maximum of $15 statement credits, I had expired my card. But I definitely used them while they were active. What can you say? I am human – I reserve the right to be lazy.
Conclusion
Putting some thoughts on your credit card strategy is really rewarding. It’s up to you to decide how much effort you’re ready to put in for the extra card rewards, but here’s the key points: Adjust your card to suit your expenses.
These two strategies will help you make the most of your credit card rewards and avoid credit card debt.
*Information regarding Affinity Cash Rewards Visa® signatures is collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.
