As the holiday season approaches, this is an ideal time to get some extra cash back in your bank account, as well as to capitalize on credit card perks that can make everything from gift buying to travel more affordable and enjoyable. (Just make sure you pay off your credit card balance in full each month to avoid interest charges.)
Ready to get more out of your credit card rewards? Here’s what to do.
Familiarize yourself with the rewards that each of your credit cards provides. Rewards typically come in one of three forms: cash back as a percentage of your purchases, points (which can be redeemed for items and services such as merchandise, gift cards, cash, and travel), or miles, which are mainly exchangeable for travel-related rewards, such as flights or hotel stays.
To get details, call your credit card issuer’s customer service line or look up your benefits on its website or app. When you review rewards information online or on paper, pay attention to the asterisks and plus signs that designate footnotes, as they often list additional perks and restrictions. “Read the fine print,” advises Daisy Hernandez, credit cards editor at The Points Guy, a website that provides tips and tools for managing rewards. There may be limits, for example, on the total amount of rewards you can earn in a certain category or over a specific period.
Then make a list of which cards are best to use for specific spending situations, such as buying groceries, getting gas, and dining out. For instance, you may get 6 percent cash back on groceries with one card and 2 percent cash back with another. In that case, you’ll want to pull out the former when you shop for food. Or, if you are planning to travel abroad, bring a card with no foreign transaction fees. “Know the ins and outs of your program, and match your lifestyle to your card,” says Ted Rossman, senior industry analyst for CreditCards.com and Bankrate.
Monitor and manage your rewards. Staying on top of your credit card rewards takes some effort, but you’ll make the most of what you have coming to you if you’re organized. For starters, make sure you know whether your rewards will expire. Most credit card programs don’t impose expiration dates on rewards you earn while your account remains in good standing. But there are exceptions, so check your card’s terms.
Along with staying on top of the cash back, points or miles you’ve earned, it’s important to track one-time or yearly perks such as a free night at a hotel, complimentary streaming service subscriptions, or shopping credits at select retailers. Also, monitor annual fee amounts and their renewal dates, and check your issuer’s policies on account inactivity if you rarely use a card; the issuer may lower your credit limit or close the card if you don’t use it much. Many credit card issuers have apps and online dashboards where you can track rewards, view your benefits, and activate offers.
