Chris Bridges, Founder and CEO, VITAL Card Inc.
As a customer, you can adopt a number of methods to maximize your credit card rewards. We’ve compiled a list of 12 helpful tricks that can help you get the most out of them.
Tips for Maximizing Credit Card Rewards
1. Select the Appropriate Credit Card
It is a good idea to review the rewards a credit card company offers before signing up with them. You should also check if the kind of purchases you usually make are incentivized under the program.
The kind of discount, cash back, or travel rewards a credit card company offers largely depends on their partner companies. For example, some might send you monthly vouchers to a certain restaurant, while others might offer added cash benefits on your Amazon purchases.
It’s worth noting that the same company might sometimes offer different rewards on different kinds/categories of cards.
2. Take Advantage of the Loyalty Programs
It is wise to select a card with a suitable loyalty program, that will help you achieve your goals and offer rewards that you can actually use while making purchases.
Similar to user rewards, loyalty program benefits can include a number of offers/incentives, all of which might not be of use to you.
If you aren’t a frequent traveler, for example, frequent flier miles wouldn’t be of much use to you.
3. Utilize the Card for All Purchases
You can maximize your rewards by utilizing your card for all possible purchases. The more you purchase with your card, the greater your rewards are.
Every eligible purchase adds to the rewards credit cards have to offer. These rewards are either in the form of cashback on every dollar spent or in the form of points or miles.
4. Look for Redemption Options Regularly
Redemption can help you efficiently utilize your earned rewards and plan ahead to achieve your next set of rewards.
You can redeem your rewards from the redemption portal of your credit card issuer. In case of collected cashback, you may request direct deposits, checks, or a statement credit.
Miles can be redeemed for travel-related activities, whereas points can be redeemed for gift cards, digital media, etc. With some cards, you must redeem your rewards from time to time as their value might gradually decrease.
5. Keep Track of New Credit Card Options
Keeping a close watch on the launch of new credit cards can help you switch to options that offer rewards that are better suited for you.
As part of their marketing strategy, companies tend to change the rewards linked to the existing credit cards and also launch new credit cards from time to time.
Switching to a new credit card is a decision that you should generally make based on your average monthly expenditure and the kind of things you spend money on
6. Try To Earn the Sign-up Bonus
Credit cards often come with a sign-up or welcome bonus. Usually, credit card issuers have certain guidelines that require you to spend a specific amount of money within a few months of the account opening to qualify for the sign-up bonus.
These bonuses usually vary from $150 to $750 and require minimum spending of $500 to $4,000 within the first three months from the account opening day.
Remember to read all the terms of your user contract to understand how you can avail this bonus. We also don’t recommend overspending to meet the spending limit. The amount you spend trying to meet it might not be worth the bonus it earns you.
7. Make Full Payments of Your Bills
We suggest you clear all your credit card dues on time to avoid paying high-interest rates and losing out on the benefits derived from rewards.
Credit card issuers charge an annual percentage rate as interest if you have unpaid dues that have been carried forward for more than the allowed grace period.
Additionally, the credit cards offering rewards come with higher APRs, intensifying your problem further.
8. Utilize the Limited Period Offers
We suggest you subscribe to your credit card issuer’s marketing emails to keep a close watch on these limited-period offers and grab them on time. Many credit cards come up with limited-period offers. These offers can help you save and earn more rewards than usual.
You can time your smaller purchases to match the limited-period offer window and benefit from the same.
9. Opt for Multiple Cards
You can opt for multiple cards from your credit card issuer and combine the rewards you receive on each card. This strategy lets you combine the points or miles of your various cards and lets you redeem them for better rewards at a future date.
Ideally, you are permitted to combine or transfer rewards with cards of the same type and belonging to the same issuer.
10. Earning Extra Miles by Shopping via Portals
Using different shopping portals while purchasing online is a great way to maximize your rewards. Many banks and aviation reward programs promote shopping portals.
Your purchases are tracked through a cookie by the shopping portals, enabling them to grant you various points or miles based on your purchase.
We recommend you skim through and compare the various shopping portals so that you can cash in on the ones offering the maximum points or miles, helping you attain your desired rewards.
11. Food Purchase Rewards
Opting for credit cards that offer these rewards is yet another way to maximize your rewards on a day-to-day basis.
Go for credit cards that offer grocery stores and restaurant purchases perks. Doing so can help you save and earn regular rewards due to the frequency of grocery purchases.
For example, a credit card might offer a cashback of 1.5% on up to $7,000 spent on grocery stores or restaurants each year.
12. Timing Large Purchases
We recommend staying alert and updated on the various bonus categories, offering your desired points and miles to time your large purchases strategically.
You can strategically time your large purchases such as upcoming vacations, buying a new home or furniture to synchronize it with your new credit card, enabling you to become eligible for the sign-up bonus. Additionally, you can synchronize your large purchases with the various quarterly bonuses.
Why Are Credit Cards Popular?
Most of all, because of their convenience. Credit cards allow users to make easy (now, even contactless) payments anywhere around the world. This attracts a lot of customers towards major credit card providers like VITAL Card.
It is estimated that over 175 million Americans currently own one or more credit cards. Since they gained widespread popularity, credit card companies have been keen on attracting and retaining more customers using a number of marketing tactics.
The ones that have worked the best so far are user rewards and loyalty programs.
While companies usually offer rewards such as special discounts, frequent flier miles, curated hampers, etc., we’re changing up the game at VITAL. We offer direct cashback to our customers.
Maximize Your Cards and Save Money
Maximizing your credit card rewards can provide you with countless economic benefits while also helping you save a lot of money.
However, it is also important to remember that it is crucial to have a good credit score in order to become eligible for good credit cards that offer better, and more useful rewards. Simply put, good credit leads to good credit cards, which in turn earn you more lucrative rewards.
What better way than signing up with a credit card with great rewards that help you build your credit score? Yes, that’s exactly what we do at VITAL Card. We give you various rewards such as 1.5% cashback on all annual spending and cash forever for referring your friends to join. Apart from this, we help you build your credit score and reward you when you succeed. So what are you waiting for?
Sign up for early access now.
VITAL Card blog posts are intended for informational purposes only and should not be considered financial or any other type of advice.