8 Credit Card Tips That Save You Money
-
Written by
Dia Adams
-
Edited by
Amen Oyiboke-Osifo
-
Reviewed by
Jasmin Baron
Americans paid a record $25.4 billion in credit card fees in 2022, with late fees alone topping $14 billion, according to the Consumer Financial Protection Bureau. That’s money straight out of consumers’ pockets that could have been saved or spent elsewhere.
Find Out: Best Rewards Credit Cards
Discover: Ways To Elevate Your Summer Travel Adventures
If you want your credit cards to work for you instead of against you, it’s time to get intentional about every swipe, perk and payment. Here’s how to make sure your cards actually save you money.
Pay on Time, Skip the Fees
Interest charges and late fees are profit machines for banks. They wipe out any rewards you earn. Set up autopay for the full balance — don’t trust your memory. Traveling or shopping overseas? Use a card with no foreign transaction fees.
Come renewal time, add up what you’ve earned and saved with the card, and make sure the card makes sense to keep. If you’re paying an annual fee but not using the card’s perks, downgrade to a no-fee version. If you do think the card is worth keeping, make sure you ask for a retention bonus before you pay the annual fee. Sometimes, a quick call can net you extra points, statement credits or even a lower fee just for asking. These small habits keep more money in your account.
Dig Into the Benefits
Most people never read the benefits guide. That’s a mistake. Return protection, for instance, once saved me when an Amazon order sat in my trunk, forgotten, until its return window closed. My card’s return protection refunded me, no questions asked. Extended warranties, cell phone insuranceand travel coverage are often buried in the fine print. Mark your calendar to review your credit card perks every few months. You might find something that fits your life perfectly.
Stack Rewards Using Shopping Portals and Offers
Double dipping may be frowned upon for chips, but it’s a plus when you’re talking about rewards. Before buying anything online, check your card issuer’s shopping portal or third-party sites like Rakuten. I’ve seen 5% or more back just for clicking through a portal. Some cards toss in targeted offers — activate them before checkout. Stack these with retailer sales and coupons. That’s how you turn a routine purchase into a small win.
Time Your Spending for Sign-Up Bonuses
Sign-up bonuses can be the fastest way to rack up value. Don’t chase them with random shopping sprees, though. Time your application for a period with big, necessary expenses such as home repairs or travel bookings. If I’m close to the spending threshold, I’ll even prepay bills like car insurance or utilities to cross the finish line, rather than buying things I don’t need. Avoid the trap of spending just for the sake of a bonus; make every dollar count.
Redeem Rewards for Real Value
Multiple consumer surveys say millions of credit card holders are sitting on rewards. If you want to avoid joining that crowd, it’s time to get intentional about how you use your cards. The best rewards credit cards pay for themselves many times over if you’re savvy.
Not all redemptions are created equal. Using points for merchandise usually means settling for a poor rate. Beware redeeming points right at checkout — those flashy offers rarely deliver the best value. You’ll likely do better taking the cash back and using that cash for purchases that also earn rewards.
Cash back or travel rewards almost always stretch your points further. Before you cash in, do the math: If your points are worth less than a penny each, look for better options. Transferring points to travel partners can sometimes double their value, especially for flights or hotels.
Use the Right Card for Each Purchase
No single card is best for everything. Keep a shortlist — one for groceries, another for gasa third for travel. Jot a quick reminder in your phone or wallet so you don’t forget which card to use where. I used the method of putting stickers on my spouse’s cards so it’s easy for him to grab the right card for the right purchase. This approach lets you maximize rewards without juggling a dozen accounts.
Some cards rotate their bonus categories every quarter. Activate these as soon as they’re available. If you know you’ll need a new appliance or want to stock up on essentials, time your purchase to match the bonus. That extra 5% back adds up faster than you think.
Don’t Let Your Perks Expire
Credits and perks are often doled out monthly or quarterly — think streaming credits, dining credits, or travel reimbursements. It’s easy to forget about them until it’s too late. Set a calendar reminder to use these benefits before they disappear. A few minutes of planning ensures you don’t leave money on the table.
Make Every Card Work for You
Credit cards aren’t just payment tools — they’re opportunities. Know your perks, automate good habits, stack rewards and redeem points smartly. Treat every swipe as a chance to save, not just spend. The banks count on you missing the details. Prove them wrong.
