7 Smart Ways To Use Your Credit Card Rewards Like a Pro

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Credit card rewards can help turn once-in-a-lifetime vacations into reality, but squeezing the most value out of them can be a challenge. Everyone seems to have a different strategy, and there’s rarely just one “right” way to redeem your points.

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No matter the type of points, miles or destination you’re aiming for, some tips stand the test of time. After more than a decade of maximizing credit card rewards, here are seven strategies that can help you do the same.

To earn the most rewards, look for cards with big bonus multipliers in certain categories. For example, if a card earns 4x points at grocery stores, consider what else you can buy there to make the most of that bonus. Some cards even give extra points depending on the day or time you use them.

When I was starting out and couldn’t remember which card to use, I put small stickers on them: D for dining, T for travel, G for gas. This way, I didn’t miss out on easy points.

Don’t let service providers rope you into paying bills through ACH drafts from your bank. I make sure my water, electricity, internet and car insurance bills are all paid with a credit card. Those few hundred dollars each month add up to tens of thousands of extra miles every year.

Don’t get swayed by a big welcome bonus if you won’t use the card long term. Your main card should align with your biggest spending categories so you get consistent value. Consider applying for a new card right before major expenses—like buying a home or planning a wedding—to help you hit credit card perks easily.

Online shopping portals are a great way to earn miles in addition to your credit card rewards. This lets you “double dip,” earning through both the portal and your card. You may even “triple dip” by combining that with a store’s loyalty program. Some retailers also give a percentage back or bonus points for purchases.

Learn which airlines and hotels partner with your credit cards and how to transfer points to those programs. Don’t transfer blindly—once you move points out of your credit card account, you usually can’t move them back. Some issuers even offer seasonal transfer bonuses of 20% to 50%.

While card issuers often claim points are worth about a penny each, strategic redemptions can yield three or four times more. For example, I’ve transferred points to hotel chains for expensive stays and to airlines for business-class flights to Europe.

This may sound obvious, but it’s worth repeating: Don’t carry a balance. If you’re paying 20% or more in interest while only earning 1 to 3 points per dollar, you’re wiping out the value of your rewards. To maximize rewards, avoid interest charges altogether.

Many cards offer statement credits to offset annual fees. The challenge is remembering to use them. I set calendar reminders on the 15th and 25th of each month as a safeguard.

If you wait until the last minute, the charge may not post in time—and you could lose the credit altogether.

Earning a fabulous vacation or a first-class redemption is easier than you think. By making small changes to how and where you spend—and choosing the right cards—you’ll be multiplying your rewards in no time.

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Editorial Note: Any opinions, analyses, reviews or recommendations expressed are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
*CardCritics™ references a FICO® 8 score, which is one of many different types of credit scores. A financial institution may use a different score when evaluating your application.