Maximize the use of your credit card rewards

Sponsored by

Welcome to 2/4 of Credit Card Compass- a series where we help you navigate through the maze of the plastic card that rules our world. Welcome to ThriftyOwl.Club, where we explore financial mindsets and hacks, helping you enhance your financial acumen one hoot at a time!

Did you check out 1/4 of Credit Card Compass? Check out

Before we get into the world of credit card rewards, lets hear few words from our sponsor — Masterworks which allows you to invest in a new class of instrument — ART.

The surprising asset that (handily) beat stock market darlings

What's one investing secret that billionaires like Jay-Z and Ken Griffin know that you don’t? A market whose prices grew at an annualized rate of 18.2% from 1984 to 2022, outpacing the S&P 500, and stocks like Berkshire Hathaway and Walmart: Basquiat. 

That’s right, the market for Jean-Michel Basquiat’s art. And now, for the first time, everyday investors are getting in on the action.  

Thanks to Masterworks, the award-winning platform for investing in blue-chip art. When Masterworks sells a painting – like the 20 it's already sold – investors can realize a return. 

All of their offerings are limited, and shares can sell out in just minutes, but readers can skip the waitlist with this exclusive link. 

Past performance is not indicative of future returns, investing involves risk. See disclosures masterworks.com/cd.

How do you view credit card rewards? 

Do you see them as plastic friends or an addition to your monthly expenses?

Credit card users are often tangled up in the rewards and points world. Lost where to use them, these rewards and points either exceed the usage time or go to oblivion because its user didn't know where to put them for the best results. 

So, rather than letting these points go to waste, why not consider which card to choose? 

Know Your Card, Know Your Rewards:

The first step is understanding your credit card's reward program. Different cards offer different benefits, so dive deep into the program details.

• Cashback: This is a straightforward reward, offering a percentage of your spending back as cash. Look for cards with high cashback rates, especially in categories you frequently spend on, like groceries or fuel.

• Travel Points: These points can be redeemed for flights, hotel stays, and other travel-related expenses. Frequent travellers can benefit greatly from cards that offer bonus points on travel bookings.

• Other Rewards: Many cards offer other incentives like airport lounge access, movie tickets, or shopping vouchers. Choose rewards that align with your lifestyle and aspirations. These are perfect for those who prefer flexibility in their rewards.

Tailor Your Spending to Maximize Rewards:

Now that you know your card's program, it's time to make it work for you:

• Match Your Card to Your Lifestyle: Don't just get any card; choose one that aligns with your spending habits. If you travel often, prioritize a travel points card. If groceries eat up a significant portion of your budget, a card with high cashback on groceries is your best bet.

• Maximize Bonus Categories: Many cards offer accelerated rewards (like double or triple points) in specific categories for a limited time. Look for these offers and strategically use your card during those periods to rack up extra rewards.

• Utilize Smart Spends: Some cards reward you for paying bills, recharging your phone, or subscribing to streaming services. Leverage these features to earn additional points without changing your spending habits significantly.

Beyond the Basics: Pro Tips for Earning More:

• Welcome Bonuses: Many cards offer a hefty welcome bonus upon meeting a minimum spending requirement within a specific timeframe. This can be a great way to jumpstart your rewards journey.

• Referral Bonuses: Some cards reward you with points or cashback for referring friends and family. This is a win-win situation, as you both get rewarded!

• Promotional Offers: Keep an eye out for limited-time promotions from your card issuer or partner brands. These can offer bonus points, discounts, or exclusive experiences.

• Pay Your Bills on Time: This might seem obvious, but maintaining a good credit score can unlock better reward programs and higher credit limits, allowing you to earn even more!

Redeeming Your Rewards Wisely:

Remember, earning rewards is just half the battle. Here are some tips for maximizing their value:

• Track Your Points: Keep an eye on your points balance and expiration dates. Don't let your hard-earned rewards go to waste!

• Redeem for the Highest Value: Compare the value of different redemption options (e.g., statement credit vs. travel points) and choose the one that offers the most bang for your buck.

• Combine Points and Cash: Some programs allow you to combine points with a small cash amount to unlock better rewards, like a flight upgrade.

A Word of Caution:

While maximizing rewards is exciting, remember, responsible credit card usage is crucial. Always spend within your means and pay your bills in full and on time to avoid hefty interest charges and financial burdens.

By following these tips and adopting a strategic approach, you can transform your credit card from a simple payment tool into a powerful rewards machine. So, get informed, use your card wisely, and unlock a world of benefits! Remember, responsible spending and financial discipline are key to reaping the true rewards of credit cards.

Recommended Reads:

• Income Innovations: Beyond 9-to-5

• Emotional Intelligence in Finance: Mastering the Mind Game

• Conscious Coin: Navigating Mindful Spending