How to Maximize Your Credit Card Rewards

Whether you're filling up your gas tank, buying groceries or treating yourself to a night out, chances are you’re paying with your credit card. Did you know that using your card could be rewarding? From cash back to travel miles or even points on purchases you're already making, learning how to maximize credit card rewards can help your budget. You can also get some great perks!

Getting the most out of your credit card rewards isn’t about changing your spending habits or buying things you don't need—it's about making your regular purchases work harder for you.

What Are Credit Card Rewards?

Credit card rewards allow cardholders to earn cash back, miles for travel or points to use on future purchases. Using your rewards can help you save on purchases, enjoy discounts and stretch your budget further. Some cards offer incentives like travel insurance, airport lounge access, concierge services or extended warranty protection.

Most rewards credit cards will offer one or a combination of the following benefits:

Typically, you earn rewards based on your spending. This might be a flat rate on all purchases (like 1.5% cash back on everything) or varying rates for different categories (like 3% on dining, 2% on groceries and 1% on everything else). Some cards also offer bonus rewards for spending a certain amount in the first few months of opening the account.

Choosing the Best Rewards Credit Card for You

Rewards credit cards aren’t one-size-fits-all. Each card will come with a unique set of perks—and its own interest rates/APRs, fees and usage requirements. It’s important to consider all these factors before signing up:

• Annual percentage rate (APR). This is the interest you’ll pay on any balance you carry.
• Annual fee. Some rewards cards come with a fee you’ll pay each year.
• Type of rewards and benefits: Narrow down the type of rewards you want based on your spending habits For example, frequent travelers might benefit from a travel rewards card like Navy Federal’s Visa Signature^® Flagship Rewards Credit Card that offers 3X points on travel purchases. Or, if you want a card for everyday purchases, you might be drawn toward the Navy Federal More Rewards American Express^® Card, which offers 3X points at supermarkets, gas stations and restaurants.

Once you’ve narrowed down a few cards, read the fine print and pay attention to the terms and conditions of the rewards program. Find out if the rewards expire and when, as well as any restrictions or limitations that may affect your ability to redeem them.

5 Strategies for Maximizing Credit Card Rewards

With a few clever strategies, you can maximize the rewards you earn and make your purchases go even further.

1. Use your card for all eligible purchases. One of the simplest ways to maximize your rewards is to use your credit card for as many qualifying purchases as possible. This doesn't mean spending more; it means shifting your existing spending to your rewards credit card.
2. Take advantage of category bonuses. Some rewards cards offer higher earning rates in specific spending categories. To maximize your rewards, use your card that offers the highest rewards rate for each type of purchase. Keep track of rotating bonus categories and activate them when required, and plan larger purchases around bonus categories when possible.
3. Meet sign-up or welcome bonus requirements. Sign-up bonuses can be worth hundreds of dollars in rewards, making them a valuable opportunity. To ensure you meet the requirements, plan large purchases around the time you open a new card. Always make sure you can meet the spending requirement without straining your budget. A large bonus isn't worth going into debt!
4. Use shopping portals for extra benefits: Many credit card issuers have shopping portals, like Navy Federal Member Deals, that allow you to earn additional bonus points when making purchases through their platforms. These portals may also offer exclusive discounts and perks. Instead of going directly to a retailer’s website, check the shopping portal to find bonus point opportunities.
5. Stack rewards with other programs. Use credit card rewards in conjunction with store loyalty programs and apps to take advantage of perks and amplify your buying power. For instance, you might earn credit card points, store loyalty points and cash back from an app all on the same purchase. This strategy of "stacking" rewards can multiply your earnings on a single transaction.

Take Advantage of Rewards Credit Cards

Are you making the most out of your credit card rewards every time you swipe your card? Whether you’re looking to stretch your budget for essential items or dreaming of a well-deserved summer vacation, learning how to maximize credit card rewards can play a significant role in making your spending work harder for you.

Navy Federal Credit Union offers a range of credit card options with rewards programs to suit every member. Explore our offerings and see if you’re prequalified for a rewards card today!