Get the Most From Your Credit Card Rewards

1. Know What Your Credit Cards Offer

The first thing you need to do is figure out exactly how your rewards cards work, and what benefits they offer.

Points, Miles and Cash Back

Credit card rewards come in a few different forms. There are airline miles you can redeem for flights on a specific airline or its partners. There are also hotel points you can use for award stays. Some cards earn cash back you can use to shave a few dollars off your monthly statement. Finally, some credit card issuers such as American Express and Chase have their own types of points you can either transfer to different airlines and hotels, or redeem for cash back on travel and other expenses. Read up on the type of points or miles your credit cards earn and all the ways you can put them to use.

Special Benefits

In addition to earning points, rewards credit cards usually offer other types of benefits. The Capital One Venture Rewards Credit Card will give you a statement credit for up to $100 for either a Global Entry or TSA Precheck application once every four years, which makes getting through the airport easier. Knowing the benefits offered by your rewards cards and actually putting them to use can save you time, money and hassle.

Combining Points

If you have more than one credit card from the same bank, it might be possible to combine the rewards you earn from all of them.

Annual Fee

The other important thing to keep in mind is whether your card charges an annual fee to keep it open each year. While many great rewards cards do not have annual fees, most do these days. Some even charge hundreds of dollars per year in exchange for benefits like airport lounge access, Uber credits and hotel elite status. Tally up the annual fees on your rewards cards and see if you are getting enough value from their benefits to make paying for them worth it year after year.

2. Take Advantage of an Intro Bonus

One of the best ways to maximize credit card rewards is to score an intro bonus. An intro bonus, also known as a sign-up bonus, is usually an offer worth thousands of points or miles you can earn with a new credit card. It's a little more complicated than just signing up for a new credit card and getting a bunch of bonus points, though.

3. Look Out for Promotions

Sometimes rewards credit cards offer limited-time promos to attract new customers and get existing ones to use their cards more.

Limited-Time Promos

Credit cards sometimes offer bonus miles or points on purchases made during a certain time period, usually with a dollar cap. Pay attention to any emails or mailers that you receive from your card issuer to see if you might be targeted for a promotion like this.

Annual Perks

Some premium rewards credit cards also offer annual benefits that reset either each calendar year or every year you keep a card open and pay its annual fee.

4. Spend Strategically

In the past, most rewards credit cards simply allowed users to earn 1 point or mile per $1 spent, no matter where they used them. But with so many more rewards credit cards available these days, banks have had to raise their game and offer bonus earning opportunities to keep cardholders interested. It's important to think about the kinds of purchases you usually make and use the credit cards that will earn the most points or miles for them.

Bonus Categories

Many travel rewards credit cards earn multiple points per dollar spent when you use them to make purchases at specific types of businesses.

Quarterly Bonus Categories

Instead of permanent bonus categories, some rewards credit cards offer bonuses that change every few months.

Use Multiple Rewards Cards

Chances are you have more than one credit card, and that's a good thing because it means you can earn bonus points at even more places. The Amex EveryDay^® Preferred Credit Card earns 3 points per dollar on up to $6,000 in eligible purchases per calendar year at U.S. supermarkets, and 2 points per dollar at eligible U.S. gas stations with no cap. It even offers a 50% bonus on all the points you earn each billing period when you use the card 30 times or more. If you combine these two cards and use them strategically, you could be earning bonus points on nearly every dollar you spend.

5. Pay Off Balances in Full

Before you get carried away with charging everything, though, remember that the key to getting the most value from credit card rewards is to keep your credit in good shape. Only use your rewards cards to make purchases you would otherwise, and be sure to pay off your balance on time and in full every month.
Carrying a balance can lower your credit score over time otherwise. The interest and late fees you have to pay on credit card balances will also cost far more than your rewards points are worth. By using your credit cards responsibly, though, you can get plenty of value from the rewards you earn with them.

The Bottom Line

Rewards credit cards are a fantastic way to earn free travel, cash back and other benefits. By looking at the perks your credit cards offer, taking advantage of any bonus-earning opportunities, and using them responsibly, you can reap hundreds—or even thousands—of dollars in value from rewards credit cards each year. For more information on rewards credit cards and to see current offers, you can pull up personalized options through Experian CreditMatch^TM.