Discover Clever Ways to Use Credit Cards for Rewards and Savings

Using credit cards can be a great way to earn rewards and save money, but it requires some strategy. By understanding how credit card rewards work, you can maximize your earnings and make the most of your credit card benefits.

Many credit cards offer sign-up bonuses, which can be worth hundreds or even thousands of dollars in rewards. For example, some credit cards offer 50,000 points or miles after spending $3,000 in the first three months, which can be redeemed for a free flight or hotel stay.

To get the most out of your credit card rewards, it's essential to understand the different types of rewards programs and how they work. Some credit cards offer cashback rewards, while others offer travel rewards, points, or miles.

Credit cards can be a valuable tool for managing finances, but it's essential to understand the basics first.

You can earn rewards on your credit card purchases, such as cashback, travel points, or other benefits, depending on the card you choose.

Most credit cards have a minimum payment due each month, which is typically 2% of the balance or a set amount.

To avoid late fees, make sure to pay your credit card bill on time, every time.

Credit utilization is the percentage of your available credit being used, and keeping it below 30% can help your credit score.

A good credit score can qualify you for lower interest rates and better credit card offers.

Using credit cards effectively is all about making the most of their benefits while minimizing the drawbacks.

According to a Credit Penguin study, 41.2% of American households carry at least some credit card debt, with an average balance of $9,333. If you're part of that group, it's essential to use your credit cards strategically to pay off your debt.

To do this, prioritize paying off the card with the highest APR first, and pay as much as you can above the minimum payment on that card. This is known as the avalanche method.

You can also use a no-annual-fee card that offers no-fee initial balance transfers with no interest for at least a year to pay down your balances. Just be sure to set up a reminder to repeat this process before the no-interest period ends.

Another strategy is to use your credit card for everyday spending, such as groceries, gas, and coffee. This can help you reach your spend goal quickly and earn rewards.

To maximize your rewards, consider using multiple credit cards with different earning categories. For example, you can use one card for office supplies and another for travel expenses.

Before applying for a credit card, make sure you understand the details of its APR, fees, and penalties. Some cards may also offer intro or teaser offers that can save you money.

Here are some specific credit card strategies to consider:

By using these strategies, you can make the most of your credit cards and achieve your financial goals.

Maximizing Rewards Value is key to getting the most out of your credit card. You can leverage issuer portals to maximize your redemption, such as Capital One Travel or Chase Travel.

Not all rewards redemption options yield the same value, and you could unintentionally dilute their value. For example, cards that offer travel rewards will often have their highest redemption rate when you redeem rewards for travel-related purchases.

To maximize your rewards, consider stacking cards in the same rewards program, like the Chase trifecta. This will help you strategize your spending and pool your reward earnings into one account for maximum value.

Transferring rewards to airline partners can also significantly boost the points or miles value. Be aware that some cards with lucrative bonus categories have spending caps, so keep an eye on those limits.

Here are some of the best travel credit cards of 2025, categorized by their benefits:

Remember, the key to maximizing rewards value is to be strategic about your spending and redemption options. By leveraging issuer portals, stacking cards, transferring rewards, and being aware of spending limits, you can get the most out of your credit card.

Paying off high-interest credit cards first is usually the best approach, as it saves you more money on interest in the long run.

This method, known as the avalanche method, involves prioritizing payments on cards with the highest interest rates.

The snowball method, which focuses on clearing the smallest debts first, can be more motivating and help maintain a good credit score by reducing the number of outstanding debts.

However, the avalanche method is generally more effective in the long run, as it minimizes the total interest paid over time.

Ultimately, the best approach depends on your financial situation and personal preference for managing debt.

To maximize your rewards earnings, consider the following strategies.

You can earn bonus rewards by meeting the spending requirement for your credit card's welcome bonus. This can be done by making a large purchase, such as a new laptop, and paying it off at the close of your next billing cycle to avoid interest charges.

Earning referral bonuses by referring a friend to apply for your credit card and their application being approved is another way to earn bonus rewards. Additionally, adding an authorized user to your account can also earn rewards for their purchases.

Here are some ways to alternate spending between high-earning cards:

If you want to get the most out of your rewards, consider leveraging issuer portals, watching which redemption options you use, and transferring rewards to airline partners.

If you're a small business owner, managing expenses wisely is key to maximizing financial benefits. By having multiple credit cards, each offering higher rewards in specific categories, you can strategically align your spending to the card that offers the best rewards for that particular type of expense.

For instance, use one card that offers extra cash back on office supplies for all your stationery and equipment purchases and another that gives you more points on travel for your business trips. This way, you're not just earning rewards on your spending; you're optimizing every transaction to get the most value back into your business.

Earning bonus rewards is a great way to maximize your credit card benefits. You can earn a large rewards bonus by meeting the spending requirement for your credit card's welcome bonus. This can be done by making one big purchase, such as a new laptop, and paying it off at the close of your next billing cycle to avoid interest charges.

Referral bonuses are another way to earn bonus rewards. You can earn a bonus when you refer a friend to apply for your credit card and their application is approved. This is a great way to earn extra rewards with minimal effort.

Adding an authorized user to your account is also a way to earn bonus rewards. This user can spend on your card's credit line, and your account will earn rewards for their purchases. However, be sure to only add someone who is responsible and trustworthy as an authorized user on your card, as you will be responsible for the purchases they make.

Strategically using multiple cards can also help you earn bonus rewards. For example, using a card that offers extra cash back on office supplies for all your stationery and equipment purchases and another that gives you more points on travel for your business trips. This way, you're not just earning rewards on your spending; you're optimizing every transaction to get the most value back into your business.

Here are some ways to earn bonus rewards:

Remember, the key to earning bonus rewards is to be strategic about how you use your credit cards and to take advantage of the rewards programs offered by your card issuers.

Using credit cards can be a smart financial move, but it requires a strategic approach, especially if you owe a lot. 41.2% of American households carry credit card debt, on average $9,333.

To manage debt, prioritize paying off the card with the highest APR. This is called the avalanche method, where you pay the minimum payments due on all cards except the one with the highest interest, and pay as much as you can above the minimum on that highest-interest card.

Set up payment reminders to avoid penalties and pay at least the minimum due on each card. This will help you stay on track and avoid late fees.

If you can't pay off your balance in full, consider opening a no-annual-fee card that offers no-fee initial balance transfers with no interest for at least a year. This can give you a chance to pay down your balances without incurring high interest and penalty fees.

To make the most of your credit cards, understand the details of your cards' APR, fees, and penalties, and especially any intro or teaser offers. This will help you make informed decisions and avoid costly mistakes.

You can also use your credit card for everyday spending, such as groceries, gas, and even small expenses like your morning coffee. This can help you reach your spend goal quickly and earn rewards.

Some expenses, like monthly rent or mortgage payments, can also be charged to your card, if allowed by your bank or landlord. You can also use services like Plastiq to pay virtually any bill with a credit card, though be aware of the fees involved.

Credit card offers can be confusing, but they often come with attractive rewards and benefits.

The average credit card has an annual fee of around $30, but some premium cards can charge up to $500 per year.

Some credit cards offer 0% introductory APRs, which can be a great way to save money on interest charges.

You can earn up to 5% cash back on certain purchases with the right credit card.

Some credit cards have rotating categories for cash back rewards, which can be a great way to earn rewards on specific purchases.

The best credit cards for rewards often have high spending limits and generous sign-up bonuses.

Some credit cards offer travel insurance and concierge services, which can be a great value for frequent travelers.

You can earn up to 3 points per dollar spent on certain purchases with the right credit card.

Credit card hacks can be a game-changer for your finances.

Still, you might have questions about which ones are worth your time. Explore our FAQs for the answers you seek.

You can earn significant rewards with the right credit card, but it's essential to understand the terms and conditions.

Some credit cards offer cashback, travel points, or other benefits that can save you money in the long run.

The key is to find a card that aligns with your spending habits and financial goals.

You should always read the fine print and understand the interest rates, fees, and rewards structure before applying for a credit card.

It's also crucial to pay your balance in full each month to avoid interest charges and maximize your rewards.

Purchasing gift cards using your credit card at a local grocery store, office supply store, or superstore can earn you rewards and cash back on the purchase, plus the cash on the gift card itself. This can be a clever way to maximize your credit card rewards, especially if your card earns elevated rewards and cash back at grocery stores.

You can buy gift cards for restaurants, Amazon, rideshares, streaming services, or other places you normally spend at anyway. However, be careful not to overdo it, as some issuers may consider this "manufactured spending" and cancel your account if you do it too often.

Some credit cards, like the Blue Cash Preferred Card from American Express, may not allow gift card purchases to count towards the initial spending threshold. So, be sure to check the terms and conditions carefully.

Running a business effectively is crucial to making the most of your business credit card rewards. To do this, you need to understand your spending patterns and choose a card that aligns with your business needs.

The right business credit card can help you streamline your operations and provide a clear line of sight to your cash flow. This can make a meaningful difference in your business.

It's essential to be conscious of cards that match your spend and take the time to consult with an expert to find a card that powers your unique needs.

Buying gifts can be a thoughtful way to show you care, but it can also help you meet the minimum spend on your credit card.

You can buy gift cards for your favorite retailers using your card at a local grocery store, office supply store, or superstore.

Make sure to check the terms and conditions of your card, as some issuers may not count gift card purchases toward the minimum spend.

Purchasing gift cards can also be a way to earn rewards and cash back, especially if you buy them at stores that offer elevated rewards and cash back, like grocery stores.

However, be cautious not to overdo it, as some issuers may consider this activity "manufactured spending", which could lead to your account being canceled.

If you have a spouse with different expenses, consider adding them as an authorized user on your card to help meet the minimum spend.

Authorized user purchases do count toward the minimum spend, but be aware that you're responsible for paying off these expenses.