Tips On How You Could Maximize Your Credit Cards

You’ve probably wondered how to maximize your credit card rewards. Fortunately, there are several ways to maximize these benefits. First, charge everything you buy to your card. Then, calculate how much you’ll spend annually. And track bonus categories. There are some hidden tricks, too, so don’t be afraid to experiment. There are ways to maximize your rewards without sacrificing your monthly budget.

Streamline your bill payments with credit cards

Before automating your bill payments with credit cards, you need to ensure you have enough money in your bank account. Choose a date for your bill payments after your regular payday, and commit to paying more each month than the minimum. You can set up automatic payments to ensure you pay all your bills on time. This will make the entire process much easier and reduce the stress of remembering to pay each bill.

Setting up automatic bill payments with your credit card can reduce the amount you owe by up to 5% or 1%. You can also set up online bill payments to schedule payments on predetermined dates or adjust them to accommodate any changes in the amount you owe. Many banks also collect bills for electronic delivery. Then, you can view and pay each bill online. These features help you stay on top of your bills.

Calculate annual spending

Calculate annual spending on your credit cards to understand the actual cost of annual fees. You can avoid paying these fees by not putting more money on your credit cards than you need. Calculate your spending patterns to identify which purchases you can put on credit. If you are carrying a balance, you may want to shift some of your spendings to a credit card that rewards you more. Keeping track of your spending will help you avoid incurring debt.

Track bonus categories

When you use your credit cards, keep track of spending in bonus categories. For example, if you use the Amex hotels card for purchases, you will get five times the usual cash back rewards. You can check your credit card statements to see how many points you’ve earned for your purchases at Costco. This is particularly helpful if you’ve mistakenly thought you’re spending money on groceries at Costco.

Using your card for gas stations, grocery stores, and online shopping will earn bonus categories. Chase doesn’t release their bonus categories in advance, so check your email and online account often. If you’re unsure, Bankrate has a great guide to helping you track bonus categories on your Chase cards. Once you’ve found a card with bonuses in those categories, activate them!

When you use rotating bonus category credit cards, you can maximize the cash back rewards by using multiple cards with high cash back. Pair a rotating bonus category credit card with a second cash back card for frequent online shopping. When you’re in the mood for holiday shopping, use the rotating bonus category credit card to make your online purchases. You’ll also earn many rewards when using both credit cards. This way, you’ll get the most cash back on your purchases!

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