8 Ways to Maximize Credit Card Points

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Many people sign up for credit cards for the rewards, but then they turn around and don’t use them properly. If you have a reward credit card, maximizing the benefits is vital. After all, your purchases generate these points.

But how do you make the most of your credit card rewards? It takes some planning and organization, but you'll love the results. Here are eight ways to maximize your rewards.

1) Pay Your Balance

Most reward credit cards have high interest rates. When you carry a balance, the interest clock starts ticking. If you’re paying interest, you’re defeating the point of receiving points. You are essentially losing money through the interest and the points’ value. Pay your credit card off every month and you’ll have points that work for you.

2) Choose Rewards That Match Spending Habits

This goes back to lifestyle and how you use revolving credit. Not all points are worth the same amount of money, and they are based on intended use.

If you use your credit card for everyday expenses like groceries or gas, ensure the card you choose offers the maximum reward for those types of expenditures.

If you travel a lot, you'll want a credit card emphasizing travel points. Some people equally use their credit card for travel and everyday expenses.

For example, one large bank issuing a credit card had one cent for travel statement credits and only $0.05 for cash back. The cash is likely to be on your groceries and gas.

Try to find a card with a flat rate that applies to all types of categories.

Read the fine print of the credit card’s rewards and ensure your chosen card meets your lifestyle.

3) Take Advantage of New Cardholder Bonuses

Welcome bonuses are common, and some can be quite substantial. The market is so competitive right now that some credit cards are offering thousands of points to earn your business.

But take advantage of these bonuses. You'll need to meet specific requirements after opening the account. Usually, it requires you to spend a specified amount of money in a designated period.

To hold to those points, plan your spending. If you don’t usually pay your everyday expenses with your credit card, do it temporarily to help meet the spending requirement. But that large purchase you’ve been wanting.

When doing this, ensure you aren’t spending more than you can pay off monthly. Otherwise, it defeats the purpose.

4) Know What Points Are Worth

Points are another form of money. They can be earned and spent. If you recognize this, it will help you make better redemption decisions.

The industry standard for a point’s worth is $0.01. This makes it easy to estimate the value, but some credit cards have point values that aren’t clear. These points can fluctuate. Their values become dependent on your spending goals.

For example, 10,000 points for one bank that issued a Visa credit card was worth $200 for travel. That rang in at $0.02 per point value, while this same credit card had 10,000 points for cash back worth $100 at $0.01 per point.

You'll need to determine the baseline value, which is the per-point value you can reasonably expect and should strive for.

Once you’ve set your baseline value, consider credit cards. Any card below your baseline is a bad deal. In contrast, any card offering redemption points higher than your baseline is a good deal.

5) Track Rewards

Ensure you know exactly how many points you have and what they’re worth. Remember: this is another form of currency. And just like you’d know how much money you have in the bank, you need to know what your points are worth.

Always remember that points expire. Often, travel points don’t expire for as long as you have the card. But all points aren’t created equal. Some hotels and airlines have expiration dates on points. It can be hard to keep track, but try stay on top of it,

6) Activate Quarterly Bonus Categories

This goes back to tracking. Many credit cards offer rotating bonus categories. Remember to activate these bonus categories every three months. To do this, you'll need to track your points and compare them to rewards.

Once you activate the bonus, remember to maximize the category. For example, if it’s everyday expenses, use it. If you need to travel with these extra points, take a trip. Stay organized and acquire all the points due you.

7) Use Shopping Portals

Most bank reward programs and airlines feature shopping portals. Utilize these portals to earn bonus points when doing your regular shopping.

For example, a large credit card issuer rewarded $0.01–0.05 per point on travel redemptions made through their portal. Cash back was $0.01 per point.

Create an account through the website where you want to make an online purchase. Find a portal that offers the most bonus points.

If you’re going to buy the item anyway, use this portal and don’t leave points on the table.

8) Use Card Offers

Some major credit cards feature one-time money-saving offers with specified merchants. These are not automatically given to you. You must log in to your issuer’s website and click to add the offer to your card.

You'll then receive the advertised discount. It may be bonus rewards or statement credit.

You don’t have to ultimately use the activating offers, but add as many as you want in case you decide to use them.

Maximize Credit Card Rewards

To maximize credit card rewards, plan ahead. Start at the beginning and choose a card with rewards that match your lifestyle.

Pay off your balance monthly so your rewards continue to be worth something. Remember, rewards are another form of currency, so track them so you can use them effectively.

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