Never. Stop. Earning. Points.
So you’ve earned your sign-up bonus, enjoyed your introductory 0% interest rate, and had your annual fee waived the first year. Now what? The honeymoon phase with your new credit card doesn’t have to end after the first year. Read on to learn how to enjoy your card to the fullest, well past the excitement of its first year. Although it takes a little more effort, there are easy steps you can take to keep your cards earning rewards for you year after year.
In this post...
Review Your Annual Spending
Go back in time and review your spending for the last year. Does your spending fall under a few specific categories? If so, be sure you’re using the right card to maximize your rewards. For example, if you have a card that earns 5% back on gas, but you inadvertently used a general purpose 1% cash back card to purchase the gas, you are leaving miles (and savings) on the table. Be sure you are using the right card for your spending and if your card’s categories don’t match your spending it may be time to shop for another card. Often times, you’ll need multiple cards to take advantage of all your spending categories.
Make a Rewards Plan
If your goal is to earn enough miles to take a trip with your spouse and know the airfare for two will cost 100,000 miles, always keep this goal in mind when using your cards. Putting your biggest expenses on a travel rewards card will help you reach that goal more quickly.
Don’t Overlook Everyday Spending
If you can charge your utilities, gas, or groceries, do it! To the greatest extent possible, make sure you are earning rewards on every dollar you spend. Just be sure you’re not carrying these expenses as a balance, otherwise the interest rate will defeat your rewards gains. Also be wary of charging any bills that add a convenience fee for using a credit card. These fees can also negate your rewards gains.
Read the Fine Print
Be sure you keep an eye on important card details like earnings caps and expiration dates. If your points expire within a certain time period, you’ll need to track the expiration date so you don’t lose them. A spreadsheet listing your cards and any critical spending caps and expiration dates would do the trick.
Review Your Automatic Payment Information
Chances are that you have your credit card number and information on file with merchants, payment services such as PayPal, or stored in your computer, smartphone, and other devices in order to make automatic payments easier. For such recurring uses, make sure the best credit card for that category of spending is being used. It may not save you much at first, but over time, ensuring you are using the optimal rewards card will help your rewards pile up even faster.
Chase Sapphire Preferred® Card
With a 60,000 point new cardmember bonus when you spend $4,000 in the first 3 months of having the card, plus 2x points on travel and at U.S. restaurants — all for a $95 annual fee — this card is one of the top rewards card values available. Chase points are transferable to 9 airlines and 4 hotels, giving you the option of booking directly via these loyalty programs for some massively lucrative award redemptions in first & business class or at 5-star luxury hotels & resorts.
