11 Ways to Maximize Your Credit Card Rewards

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Ways to Maximize Your Credit Card RewardsOne of my favorite ways to make easy money is to maximize cash back and credit card rewards. If used correctly, credit cards can actually be a great tool for improving your financial situation.

The credit card industry is extremely competitive, and that’s good news for you and me. Thanks to the banks that fight for your business, you’re able to get some great rewards for purchases that you make with your credit card.

But getting the most out of your credit cards involves more than simply having a standard card that gives you 1% cash back. If you have the right cards and use them the right way you can easily make a few hundred dollars per year just from the things that you already purchase. And in this article I’ll show you how.

Let’s look at the approach that you can use to maximize your cash back.

→ If you like getting money for doing nothing, be sure to check our Easy Money page where you’ll find some great offers and sign up bonuses.

1. Use a Card with at Least 1.5% Cash Back for Everyday Purchases

The industry standard for cash back is 1%, but there are some cards out there that offer better rewards. The Chase Freedom Unlimited offers 1.5% cash back on every purchase, and there is no annual fee. This is a great card to use for the majority of your purchases. The 0.5% difference between a typical cash back card and the Chase Freedom Unlimited may seem minimal, but it’s a 50% increase in the amount of cash back that you’re earning! This really adds up if you’re using the card for the majority of your purchases.

→ To make it even better, Chase is currently offering a $150 bonus if you sign up for the Chase Freedom Unlimited through this link.

Another great option is the Citi Double Cash card (no annual fee). With this card you’ll earn 1% cash back at the time of the purchase and another 1% when you pay the balance, for a total of 2%. If you pay your balance each month it really doesn’t make much of a difference that you’re not getting the full 2% at the time of purchase.

I personally have both of these cards and I definitely recommend either as a great “everyday” card.

2. Use the Chase Freedom Card to Get 5% Cash Back

The Chase Freedom card is a must-have if you want to maximize your cash back. Like the Chase Freedom Unlimited it has no annual fee and a nice $150 sign up bonus. The difference is how you earn cash back. With the Chase Freedom card you’ll get 1% cash back on all purchases, but each quarter there is a special category that will earn 5% cash back. The categories vary each quarter, but when the right offer is there you can rack up the rewards very quickly. Right now (at the time of writing this article) the current offer is 5% cash back on groceries. Last quarter it was 5% on gas. Other times it may be at retailers like Walmart or Amazon.

I’ve had the Chase Freedom for years, and I love it. I use it only for purchases in the 5% category. I don’t use it for other purchases because I can do better than the 1% cash back that this card offers. The key is simply to pay attention to the quarterly offers (Chase sends an email to let you know what purchases will earn 5%) and then simply remember to use the card when it’s appropriate.

→ Get the $150 bonus by signing up for the Chase Freedom card through this link.

3. Consider Specialty Cards

Ok, now that you have the Chase Freedom card for purchases that will earn 5% cash back, and you have an “everyday” card to get the best cash back on other purchases, it’s time to look at specialty cards. There are several options here, and what’s right for you will depend on your spending habits. The key is to find cards that offer higher than 1.5% cash back on things that you purchase frequently.

Some cards offer special cash back rates on gas, like the Bank of America Cash Rewards card. With this card you’ll get 3% back on gas. If you have a long commute to work or you drive a lot, this can be a good card for you. Other cards offer high cash back on things like travel and restaurants.

You may also want to consider credit cards from stores that you shop at regularly. For example, Target and Lowes both offer 5% cash back on purchases if you use their card.

4. Take Advantage of Signup Bonuses

Sign up bonuses are a great way to quickly make some easy money. Bonuses typically require you to make a certain dollar amount of purchases on the card in the first 90 days to earn the cash back, so be sure you check those details.

For example, both the Chase Freedom and Chase Freedom Unlimited are currently offering $150 sign up bonuses if you make at least $500 in purchases in the first 90 days. If you’re putting most of your purchases on credit card, those dollar amounts are very reasonable and you should easily qualify for the bonus.

Bonus offers change from time to time, so keep your eyes open for good offers that come your way. You may even get some great offers by mail.

I’ve signed up for several credit cards over the past few years in order to get the sign up bonus. You should always read the terms of the offer to make sure you know what you’re signing up for.

Personally, I look for cards with no annual fee in addition to the bonus. There are some great cards that do have annual fees, but you’ll need to use the same card for a lot of purchases in order to make up for the annual fee. My preference is simply to avoid annual fees because there are some great cards out there with no annual fee, like the Chase Freedom and Chase Freedom Unlimited.

5. Pay for Everything with Your Credit Cards

Now that you have some great cash back credit cards in your wallet, the key is to use them for every purchase. You don’t want to make any purchases simply to earn cash back, but when you’re making a purchase anyway, use the best card. If the purchase falls in the 5% category with Chase Freedom, use that card. If you have another card that earns high cash back on that purchase (like gas), use that card. Otherwise, use your everyday card.

Many of your monthly recurring bills can be paid by credit card. This includes things like your cell phone, internet access, cable TV, utilities, insurance premiums, and maybe even things like your car payment. If you can get all, or at least most, of your recurring monthly bills on a good cash back credit card you’ll see the rewards adding up quickly.

6. Use Your Cards for Big Purchases

It’s not just everyday purchase that you can use credit cards for. Big purchases is where you’ll earn a lot of cash back in no time. For example, when my wife and I purchased a car we were able to put a certain amount of it on a credit card (I think it was up to $5,000). You may also be able to pay tuition and other big bills by credit card.

7. Stack Your Rewards with Ebates

If you like cash back, you will love Ebates. With a free Ebates account you can earn cash back purchases from thousands of websites and retail stores, including Amazon, Walmart and many other big ones (and small ones too).

The amount of cash back varies by website/store, and sometimes it even varies by product category. With so many websites and stores participating with Ebates it’s really easy to save some money this way.

There are basically 3 steps to earning cash back with Ebates:

  1. Sign up for a free Ebates account.
  2. Install the browser add on (optional) that will automatically notify you of cash back offers when you are browsing the internet.
  3. Click on the notification before making a purchase to activate your cash back. (If you’re not using the browser add on you can login to Ebates and click through to a website before making a purchase.)

→ Right now Ebates is offering a $10 bonus if you sign up through this link.

And to make it even better, if you use Ebates and make a purchase with your cash back card, you can double dip on the rewards.

Ebates is the leader of it’s industry, but you can also earn cash back with BeFrugal, Swagbucks, and MyPoints. All 3 of these are currently offering signup bonuses as well.

8. Register Your Card with…

There are some websites and apps that allow you to link your credit or debit card and earn cash back from purchases made with the card. With iDine you’ll earn 5% or 10% cash back from restaurants that participate in their program. Dosh and Drop are apps that allow you to link your credit cards. You’ll earn cash back for purchases made at participating stores and websites. I use Dosh and it shows you a list of stores in your area and how much cash back you can earn. These earnings will be in addition to the cash back that you get from your credit card.

→ Get a $5 bonus if you sign up for Dosh through this link.

9. Use Reward Portals

Some credit cards will have a special portal where you can redeem your rewards, and in some cases you can earn some extra bonuses this way. For example, you may get extra points if you redeem your rewards for a gift card or book travel instead of getting cash back. The key here is to be sure that you are only using this for things that you would buy anyway. If you won’t use it, just get the cash back. To access these portals login in to your credit card account and navigate to the rewards area.

10. If You’re Self-Employed, Get a Cash Back Business Credit Card

Are you self employed? If so, be sure that you are using a cash back credit card for your business purchases. For my first few years in business I used a credit card that was issued by my bank when I opened business checking and savings accounts. This card didn’t have any cash back or rewards, so I was leaving money on the table. There are many cash back cards available for businesses, and sometimes you’ll find one with a good sign up bonus as well. If you have employees you can make them authorized users and also get cash back on their purchases

11. Pay Your Balance Each Month

Getting easy cash back from your credit card is great, but you don’t want to build up debt in the process. Make sure that you are only charging expenses that you will be able to pay in full each month. If you wind up paying interest you’ll be paying out much more than you’re earning in rewards.

→ Related reading: How to Create a Budget That Works

The last thing I want to point out is that you can get a free copy of your credit report at AnnualCreditReport.com. It’s a good idea to check your credit report and make sure that everything is accurate. If you find anything that is not correct, report it to the credit bureaus.

You can also get a free account at Credit Sesame that will provide you with your credit score, some helpful information, and will monitor your score every month.

If you have any tips of your own for maximizing cash back rewards be sure to leave a comment.

Ways to Maximize Your Credit Card Rewards

Disclosure: Information presented on Vital Dollar and through related email marketing is intended for informational purposes only and is not meant to be taken as financial advice. Please see our Disclosure for further information.

About the Author Marc

I've been working in internet marketing full-time since 2008. I started VitalDollar.com to share from my experience and to help others who want to improve their own financial situation. You can read my full bio here.

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  • Dr. D says:

    Great post—I completely agree with this advice! I also have a credit card with which I earn 1.5% on all purchases. I do the same as you (use the credit card often, pay off the balance immediately). In 2017, I got over $300 back on one card. Your 2017 savings is far more impressive, though! Think I’ll start looking into some of your tips.

  • Marc says:

    Dr. D,
    Thanks for your comment. Yeah, it’s easy money for doing something you were going to do anyway.

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