How to Maximize Rewards for Everyday Spending

While many rewards aficionados focus on signing up for new credit cards to get signup bonuses, not everyone has the time or inclination to participate in the signup game. After all, managing several cards, yearly fees, and rewards programs requires work, and some people do not want to devote their time or mental energy to this task.

If you fall into this category, it may be wiser to focus on optimizing one or two cards rather than pursuing prizes. Fortunately, if you understand your card’s advantages and bonus categories, you may earn a lot of rewards over time.

The key to making the most of your rewards cards is to understand how they function and seek for ways to earn extra points on your routine purchases. Here are some pointers that may assist.

Consider every payment you might pay using a credit card.
Because rewards cards earn points for every dollar spent, raising the amount you can spend on credit is the greatest method to increase your rewards total. The best method here is to figure out how many of your monthly payments can be paid with a credit card.

While you may not be aware of it, bills that you have been paying using a check or debit card for years may be able to be paid with a credit card without incurring any penalties. While your expenditures may differ, here are some things you should aim to pay using a credit card:

Rent
Utility costs such as electricity and gas
Health Insurance
Cable TV and Internet
Cell phone
Taxes
Daycare
Automobile and house insurance
Subscription Services
College tuition or student loans?
Medical bills.
Lawn Care


Keep in mind that these are only a few of the bills you might be paying on credit. Depending on your position, you may have additional, unique expenditures to pay that may be easily covered with credit.

Remember that these additional costs should be paid with credit on top of your regular expenses such as groceries, dining out, petrol or bus travel, and other spending. Every time you buy something, whether in person or online, try to use your rewards card whenever possible.

Leverage your rewards card bonus categories.
It’s also critical to use your preferred card bonus categories, whatever they may be. This is especially crucial if you have multiple cards with various bonus categories, since you’ll want to ensure that you’re using the correct card for invoices that allow you to earn additional points.

Assume you have a travel credit card that gets 3x points on eating and travel, and another that earns 6x points at the grocery store. In that instance, it’s best to use the travel card for eating and travel, and your other card for grocery shopping. While the number of credits you get from individual transactions may appear insignificant, using the correct card for the right purchase might help you earn significantly more rewards over time.

Set up auto-pay payments to be paid using credit
Most of us have payments set up to be paid automatically, whether it’s for Netflix and Hulu, a gym membership, or energy bills. Make sure that each bill you have set up to be paid automatically is configured to be paid using your rewards card rather than a debit card. This allows you to earn reward points on certain costs each month.

Utilize shopping websites and dining clubs.
Many flexible rewards programs, frequent flyer programs, and hotel loyalty programs include shopping portals where you may earn additional points. Major airlines such as American, Delta, and United all offer shopping platforms that function similarly.

Dining clubs are also available on some programs, including as Southwest and Delta. These programs allow you to earn additional points or miles just by dining at participating restaurants in your neighborhood. It’s simple and free to enroll, so you may as well earn more miles on your purchases if you’re going to eat out anyhow.


How much can the ordinary household earn?
If you’re unconvinced that the ordinary family can earn considerable benefits without constantly signing up for new cards, consider how this would function in real life. Consider a four-person family with two adults who use rewards cards. Between the two of them, they have:

A cashback card that yields 2%

A travel credit card that rewards 3% in eating and travel

A rewards card that provides 6% cash back at the grocery store on purchases of up to $6,000 a year


To estimate how much this family may make, we utilized 2017 Bureau of Labor Statistics expenditure averages. Here’s a summary of the year’s data, as well as how much a family may receive in rewards based on typical spending over 12 months:

Food at home ($4,363): $261.78 incentives at 6%

Food away from home ($3,365) costs $100.95 at 3%.

Utilities, fuels, and public services ($3,836): $76.72 @ 2 percent

Household operations ($1,412): $28.24, 2%

Household supplies ($755): $45.30 @ 6%

Household furniture and equipment ($1,987): $39.74 @ 2%

Apparel and services ($1,833): $36.66, 2%

Gas and motor oil ($1,968): $39.36 at 2%.

Other car expenditures ($2,842) are $56.84 at 2%.

Healthcare ($4,928): $98.56, 2%

Entertainment ($3,203): $64.06, 2%

Personal care goods ($762): $45.72 @ 6%

Education ($1,491): $29.82 @ 2%
Total Rewards: $923.75.

While $900+ is a lot of incentives in a year, you have the chance to earn much more. After all, these are only a few of the expenditures that the average household incurs. If you could pay some more large expenditures on credit each month, such as childcare or rent, you might dramatically increase your bottom line.

What to look out for
While maximizing rewards cards is a good idea if you’re currently using them, there are always risks to be aware of while using a credit card. Here’s things to look out for when you search for extra cash back and travel perks.

Credit card transaction fees
While many invoices may be paid with credit without incurring a fee, certain vendors, retailers, and service providers levy a fee for credit card payments. Fees are particularly common on bills like electricity, cable or internet, rent, and insurance. Before proceeding, be sure you are not being charged a price for using credit.

Annual fees
Don’t forget that certain reward cards include yearly fees. These costs may be worth it based on your spending and incentives, but you should constantly consider them to ensure that each price is worthwhile. If you are opposed to paying annual fees, check for rewards cards that do not charge them.

Budgeting blunders
Using a credit card for all of your spending may make your financial life easier, but it may also lead your budget to go out of balance. buy sure you’re only spending on things you were going to buy anyway, and that you check your spending and pay off your credit cards on a regular basis.

Debt
If you want to earn points, never use your credit card on things you can’t afford to repay. The interest you pay will always be substantially more than the rewards you receive. If you’re concerned that utilizing credit may lead to debt that you can’t afford to repay, stick to cash or debit instead.