Want to maximize rewards credit cards? Here's how according to experts.

• Author: Chris Remington
• Posted: 2024-07-06

With the new year upon us, all of us should absolutely be taking a second look at our personal finances. Thankfully, there are plenty of ways to save our limited dollars and make the most of our expenses. Cash back and reward credit cards all offer amazing opportunities to do just that. To that end, here's a look at some of the best ways to get the most out of these cards.

Track the Rewards and the Deadlines

Depending on the rewards card you get, your card may have rotating categories. If this is the case, for maximum efficiency, you may need to track when you use your reward card, and when using another card may be more appropriate. Make sure that you are using the card that will get you the most cash back. Indeed, broadly speaking, it makes sense to develop a plan when it comes to your credit cards. Before making any expenditure - particularly a major one - make sure you know the best way to get the most money from that expense. 

You should also check out what cards will earn you cash back when paying off bills. For example, some cards will boost your cash back if you use them to pay off annual subscriptions, like Netflix. 

Additionally, if you let your rewards or cash back sit there, make sure that you know when your cards expire. Many cards have no deadline, but others will expire after a few years. Don't let that be you: Never allow your cards to go to waste by failing to spend them before they expire.

Check Out the Online Portals

The credit card companies that offer cash back rewards make their money in a variety of ways. One of them is by enticing you to spend the cash that you earn on their own online portals. Of course, spending your money there comes with numerous bonuses and and discounts. As such, before redeeming your rewards points, make sure to check out the online portals that come with your cash back rewards. Doing so can identify something that you may have needed to buy anyway, and thus allow you to buy it at a less expensive cost than you would have had otherwise. 

Keep Your Payments On Time

If you ever fail to make a payment on time, you could find yourself losing points, bonuses, or more. Above all else, always make sure you make your payments on time, and remember, the points you earn cannot be used towards the payment of your bill. 

Reevaluate the Fees

Some cash back cards are free, and as such, you can use them without worrying about how much the card will cost. However, some cards - particularly those with more aggressive bonuses and rewards - will charge you a monthly fee. If you use the card as your primary credit card, it may be worth it. However, if you don't use the card very often, you'll have to examine whether or not it is worth it to keep. 

Canceling a card can cause a temporary hit to your credit score, so you may not want to do this. Instead, find out if there is a way to downgrade your credit card to lose the annual fee. You will lose some or all of the bonuses, but you will at least get to keep the card and do so without having any hits to your credit score.

Examine the Costs & Benefits of Churning Cards 

Many credit cards offer lucrative cash back rewards for using them, like $300 for the first $1,000 you spend. These can be a nice bonus, and if you are interested in doing so, you may want to examine whether or not it is worth it to aggressively churn your credit cards. This means opening a credit card, getting the bonus, and then canceling the card before you get hit with the membership fee. There are challenges with this idea: You have to be organized in order to avoid paying the fee, and repeatedly opening and closing credit cards can nick your credit score. However, if you are the kind of person who can keep track of all your cards, this may be well worth it.

Cash back cards can be amazing additions to your wallet. However, getting the most out of them requires work and effort. Follow the steps above, and you will be well on your way to keeping the most money in your wallet.