8 Steps to Improve Your Credit Card Reward

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8 Steps to Improve Your Credit Card Reward
Cash back rewards programs are often more useful
for most consumers they're also often simpler.
Still, there are certain guidelines that can help
you get the most from a cash back credit card.
The first is to never spend more than you can pay
off each month. Any rewards you earn will be
eaten up by interest payments. If you carry a
balance, you're better off getting a low-interest
card.
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Otherwise, you can Improve your cash back rewards
by following these eight steps.

• Choose an everyday card that earns good rewards
  for all kinds of purchases

Cash back credit cards generally offer at least 1
percent cash back on all purchases, meaning that
you earn a penny for every dollar you spend on
the card.
Some cash back cards go as high as 1.5 or 2
percent cash back on general purchases. Of
course, there are various trade-offs you need to
consider beyond just the percentage.
But all things being equal, the card with the
higher cash back percentage is generally the
better deal. Find the best card with the highest
percentage for general purchases and keep it in
your wallet for everyday use.
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• Pick one or two other specialty cards for special
  categories.

Some cards pay bonus points for purchases at
certain places, such as supermarkets, gas
stations or department stores.
Look at your annual spending in these categories
to figure out which cards have the highest payoff
for you. For example, if you're considering a
card that pays 3 percent back at supermarkets,
estimate your annual grocery spend and then
multiply that by 0.03 to calculate how much you'd
earn back every year.
Use that estimate to compare the card to others
that offer fixed bonuses in other categories.
Alternatively, you may want to go with a card
that earns 5 percent back in categories that
rotate every quarter. You'll have to keep up with
those categories, but it may be worthwhile. Just
note that with either of these card types,
spending in non-bonus categories usually only
earns 1 percent back.
To maximize your rewards, use your specialty
cards for purchases in bonus categories, and use
your everyday card for all other spending.
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• Weigh any annual fees.

There are many cash back cards that don't charge
an annual fee, but some do.
Choosing one over the other requires estimating
how much you'll earn in rewards every year.
Some annual-fee cards earn higher reward rates
that make the fee worth it. Other times, you'll
find yourself in the hole by paying an annual fee.
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• Find out the redemption minimum.

Many cards won't let you redeem your cash back
until you've accumulated a certain amount, such
as 50.
Other cards let you redeem at any time for any
amount, meaning that you don't have to worry
about any of your hard-earned points going to
waste.
This may not be a deal breaker, but it's an
important factor to consider when choosing a
rewards card.
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• Keep track of quarterly bonuses.

If you choose a card with rotating bonus
categories, you'll need to activate those rewards
and then remember to use that card for that kind
of spending.
If you've got multiple cards, you may want to use
a label maker or create masking tape labels
indicating what you want to use each card for.
There are also apps that track bonus categories
for you.
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• Be aware of bonus points caps.

Some cards limit how many bonus points you can
earn.
For example, you may earn 6 percent cash back at
supermarkets, but only on the first 6,000 you
spend every year.
After that, you only earn 1 percent. Other cards
impose quarterly earnings caps.
Once you've hit these limits, you'll want to
switch to your everyday card for purchases in
those categories, assuming it earns more than 1
percent.
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• Use your rewards card for all your regular
  purchases but not more.

Paying with your rewards cards whenever you can
just makes sense.
You'll not only be racking up points, you'll also
get credit card protections, such as zero fraud
liability, which other payment methods don't
provide.
But you'll never come out ahead if you're
charging extra purchases just to earn rewards. 
That's what credit card issuers would love for
you to do, but resist the temptation.
Stick to buying only what you normally would
anyway.
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• Redeem rewards regularly.

Credit card companies may revoke your points
after a certain period of time or if your account
is no longer in good standing.
Check the details of the program carefully and
make sure to redeem your points before they
expire.
One way to help remember is to choose an annual
cash-in day maybe it's right before summer
vacation or at the beginning of the holidays.
Whatever the day, don't let the temptation to
hoard points for a special purchase allow you to
lose out altogether.
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Follow these guidelines to earn the most from
your cash back credit card.
Earning cash back credit card rewards may not
seem as sexy as scoring a free flight on a travel
rewards card, but it's often the best strategy.
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