How & When to Use Your Credit Card Points to Maximize Rewards

January 30, 2020

Credit cards are a great tool that can help you in more ways than just giving you more spending wiggle-room. In fact, utilizing a credit card optimally can help you increase your credit score, plan out your expenses, and offer credit card points for fabulous money-saving opportunities.

Today, we’re digging into tips to help you get the most out of your credit cards!

Use credit for your recurring expenses

Monthly expenses are a great way to earn points through your credit cards. These expenses are not going away anytime soon so why not find a way to have them pay you, too? Below are day-to-day expenses that you might consider using your credit cards to rack up points:

  • Medical expenses –  Whether you’re stocking up on vitamins, first aid necessities, or prescriptions, using your card for medical expenses is a consistent way of getting points. If you find yourself visiting the doctor or picking up medications regularly and paying with cash, use your credit card instead and pay the credit balance with the cash you would have used originally.
  • Groceries –Buying groceries will likely never go out of fashion. Opt for paying with credit as some grocery bill may be higher purchases to help you rack up points.
  • Gas expenses –The expensive recurring cost of keeping a car running could be made a bit more bearable through points. Some cards offer benefits for using them for fees concerning travel, including the purchase of gas.
  • Department store purchases – Seasonal department store purchases may not be an everyday occurrence but they are still expenses that are likely to take place seasonally. Buying gifts through credit cards can assist you in earning points so a gift to your loved ones can be a gift to yourself, too.

Know each card’s “Earn” and “Burn” potential

Every credit card points reward program will have specific rules and implementation guidelines as laid out in the “cardholder agreement”. By understanding how your credit provider’s reward programs work, you can get a good picture of how your credit card expenses are converting into points.

Some cards only award points when you buy specific brands or make specific types of purchases. Be sure you’re diligent about knowing your credit provider and the specifics of your card as it relates to your usage. Having this knowledge is essential to getting the most usage out of your card.

In the end, the extra financial freedom is the true reward of managing your points properly. With an efficient mindset, you can make every dollar worth more than its value.

What credit card should I choose?

Finding the best credit card for points is a personal choice. It requires a survey of your expenses and the types of benefits you’d like to receive. Doing this will help illuminate what card has the best perks for your lifestyle. As you do this, be sure you pay attention to interest rates and talk with these companies to make sure you’re the right candidate for their card.

Finally, as you embark on this journey, you’ll want to make sure you have an intimate knowledge of your credit score and decide whether or not taking out another line of credit is the right option for you. Whatever you decide, be sure to put your needs first.

Looking for more credit facts and tidbits?

Check out our blog! We’re your hub for credit facts like How to Prevent Identity Theft or Habits to Raise Your Credit Score.

Whether you’d like to visit us in person or prefer the ease of applying online, Illinois Lending is a better way to borrow that works for you. Learn more, today!

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