Getting the most out of your rewards credit cards depends on the cardholder’s priorities, spending habits, and the user’s unique financial needs. (iStock)
Americans love their rewards credit cards, even if they don’t always know what they get.
While the vast majority of rewards cardholders are “satisfied” with their cards according to the 2019 JD Power Credit Card Satisfaction Study, only 66 percent of cardholders say they understand the rewards benefits from your card and only 36 percent fully understand their supplemental benefits.
The Credible online marketplace can help you compare different types of reward cards, including the different fees and fees that come with them. Use Credible’s free online tools to find the recommended credit card for your needs.
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Here’s what you need to know to maximize all the benefits – from travel credits to gas station points – that come with these rewards programs.
How to get the most out of your rewards credit cards
First, know what is at stake, as the rewards card benefits have expanded in recent years. These days, in addition to traditional perks like travel rewards points and cash back cards, users can get new perks, like helping with grocery shopping or getting front-row seats at major sporting events and entertainment, among other benefits.
Check the card details on the Credible website and see what type of credit cards you qualify for today.
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Then get started working on maximizing your credit card rewards.
For best results, purchase your new credit card from the Credible website. The site allows you to instantly reward cards and get real rate comparisons for cash back cards, rewards cards, and travel rewards cards.
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“Identify your priorities, how you spend your money, and find out what rewards translate to the highest value in terms of real dollars,” said Jayson DeMers, CEO of Email Analytics, a technology company in Seattle and a multi-reward credit card . owner.
“For example, if you travel a lot, a rewards card that saves you money on flights and hotels can save you a lot of money. If your expenses are fairly distributed, you can’t go wrong with a cash rewards card. That is my preferred reward method, “he added.
DeMers alternates between reward cards, depending on your unique needs.
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“I use a CitiBank Double Cash card for all my personal expenses, which gives me 2 percent back on all purchases,” he said. “I use the Capital One Spark Business card for all my business expenses, which also gives me 2 percent cash back on all purchases. I also use an Alaska Airlines Visa card for personal travel expenses. It has an annual fee of $ 75, but it gives me an annual supplemental fee discount that saves me a few hundred dollars on airfare each year, so it pays for itself. ”
Be flexible with your reward cards
Shaun Savage, CEO of GoShare in San Diego, California, said choosing the best rewards cards for his team is a major business priority.
“As we began spending more and more on credit cards each month, our analysts discovered which credit cards were best for our business based on our spending habits,” said Savage. “For us, the Chase Ink Preferred Business Visa and American Express Business Gold were the best.”
For Savage and his team, choosing the best rewards card is about expanding opportunities for users.
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“If you want to save money on travel through credit card rewards, Chase Ink and Amex Gold are great options,” he said. “The Chase card will give you the ability to make transfers to select hotels and airlines with a global reach. Amex Gold points are also flexible and can be used to book global travel, including flights, hotels, and rental cars. ”
Smart rewards cardholders will also want a rewards card with easy-to-use redemption options.
“Both Chase Ink and Amex Gold cards have easy-to-use redemption portals,” said Savage. “With Chase Ink, for example, I transfer points to participating partners like Hyatt to maximize the card’s full benefits.”
Keep it simple when you can
Miguel A. Suro, a Miami, Florida-based attorney and personal finance specialist at The Rich Miser, a money management website, said that cash rewards are the easiest credit cards to use, and for one good reason.
“For most people, I recommend a cash back card because of its simplicity and ease of use,” said Suro. For example, the Citi Double Cash card pays 2 percent of everything. “Even better, if you later decide to get a premium Citi travel rewards card, you can transfer your Double Cash credit / points to travel partners like multiple airlines.”
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Reward card users can also take advantage of favorite retailers and earn extensive cash back rewards. “If you shop frequently at a store that has a 5 percent co-branded credit card, open an account and take advantage of it,” Suro said. “Notable examples are Amazon and Target.”
Simplifying the use of your card and keeping things organized is another good idea for new rewards card users.
“Unless you are very knowledgeable about miles and points, I recommend that you get a general cash back card and some 5% cashback cards,” said Suro. “It is possible to maximize the benefits (especially the travel benefits) by having many cards, but it takes a lot of work to make sure you use the best card for each purchase. You should also keep up to date with the points and miles news, as the benefits constantly change. ”
