Credit card rewards and cashback programs are a great way to value out of your everyday spending. Whether you’re using your credit card for groceries, dining out, or large purchases, strategically leveraging the rewards system can help you significant benefits. Here’s how to maximize your credit card rewards and cashback, along with some tips to the most out of your cards.
Before you racking up rewards, it’s essential to understand how your credit card’s rewards program works. Different cards have different categories that higher cashback or points:
Flat-rate cashback: Some cards a flat percentage of cashback on all purchases (e.g., 1.5% or 2% back on every dollar spent).
Category-based rewards: Many cards higher rewards in specific categories like groceries, dining, gas, or travel (e.g., 3% on groceries, 2% on dining, 1% on all other purchases).
Sign-up bonuses: Some credit card large sign-up bonuses if you meet a certain spending threshold within the first few months of using the card.
Maximize Bonus Categories
If your credit card higher rewards in certain categories, to align your spending habits with those categories. For example:
Dining and groceries: Use a card that 3% or 4% cashback on dining out and grocery purchases.
Gas and transportation: Use a card that rewards you with higher cashback when paying for gas or public transportation.
Travel: Use cards that elevated rewards for travel-related expenses such as flights, hotels, or car rentals.