credit card advice
Credit card perks are one of the most underutilized benefits of having a credit card. A 2017 study from Bankrate found that 31% of cardholders aren’t redeeming the rewards they’ve earned. If you’re one of these people and paying an annual fee for your card — or interest charges on a revolving balance for that matter — you’re leaving free money on the table.
Here are three ways to maximize credit card perks and rewards, some of which you may not even know you have.
1. Pick the Right Credit Card for You
It all starts with the right credit card. No fees and a low interest rate should be your top priority when choosing a new credit card, but you should also factor in the card’s reward program to make sure it suits your spending needs and lifestyle.
If you like to travel, it may make sense to choose a credit card that has the best airline miles program, but if you have a long commute to work each day, cash back on gas may be more valuable to you.
If you already have a credit card, decide which perks appeal most to you, and, if your card doesn’t offer them, see if you can negotiate or switch to a different card (this works best if the rewards are offered through a different credit card available from the same credit card company). Below are just a few of the popular rewards categories that may fit your lifestyle.
If You Like to Travel — Top Air Miles Cards
You don’t have to be an adventurous, plane-hopping nomad to find value in a good air miles card. Americans spent more than $700 billion on leisure travel in 2017 alone. One could infer two things from this — that we like to travel (to see family, in particular, according to the data) and that it doesn’t come cheap.
Using a credit card for purchases that can earn you free or even discounted flights can be a boon to many, though travel rewards are some of the more complicated to navigate, especially when transferring air miles to partner airlines is involved. If you’re ready and willing to make the most of your travel rewards, these are a few of the top-rated air miles cards available today.
- Enjoy a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel
- Earn 2X miles on every purchase, every day. Plus earn 10X miles on thousands of hotels, through January 2020; learn more at hotels.com/venture
- Named ‘The Best Travel Card' by CNBC, 2018
- Receive up to $100 application fee credit for Global Entry or TSA Pre✔®
- Fly any airline, stay at any hotel, anytime; no blackout dates. Plus transfer your miles to over 12 leading travel loyalty programs
- Miles won't expire for the life of the account and there's no limit to how many you can earn
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 17.49% - 24.74% (Variable) | $0 intro for first year; $95 after that | Excellent, Good |
- UNLIMITED BONUS: Discover will match ALL the Miles you’ve earned at the end of your first year, automatically. For example, if you earn 35,000 Miles, you get 70,000 Miles. That’s $700 towards travel! The more you earn, the more you get.
- Earn unlimited 1.5x Miles for every dollar spent on all purchases - with no annual fee.
- No Blackout Dates. Simply pay for travel purchases like airlines, hotels, rental cars, and more with your Discover it® Miles card.
- Miles Pay You Back. Easily redeem Miles as a statement credit for travel purchases. Or get cash.
- Freeze your account in seconds with an on/off switch either on the mobile app or website to prevent new purchases, cash advances, and balance transfers.
- Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% for 14 months | 10.99% for 14 months | 13.74% - 24.74% Variable | $0 | Good/Excellent |
- $0 annual fee and no foreign transaction fees
- Earn a bonus of 20,000 miles once you spend $1,000 on purchases within 3 months from account opening, equal to $200 in travel
- Earn 1.25X miles on every purchase, every day
- Earn 10X miles on thousands of hotels, through January 2020; learn more at hotels.com/venture
- Transfer your miles to over 12 leading travel loyalty programs
- Enjoy 0% intro APR on purchases for 12 months; 13.74% - 23.74% variable APR after that
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% for 12 months | N/A | 13.74% - 23.74% (Variable) | $0 | Excellent, Good |
+ See More of Our Experts’ Favorite Air Miles Cards
If You’re a Regular Commuter — Top Gas Rebate Cards
According to ABC News, 220 million Americans spend an average of an hour and a half each day in their cars, while another 3.3 million commute at least 100 miles round trip for work each day. That’s a lot of paycheck going toward gas.
If you’re a “super commuter” or just find yourself using your car to run errands that add up in fuel costs quickly, a card that can earn you rewards on fuel purchases can help save you a fair chunk of change. Below are some of the top-rated gas-rebate cards.
- INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
- Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
- Plus, earn unlimited 1% cash back on all other purchases - automatically.
- Redeem cash back any amount, any time. Rewards never expire.
- Use your rewards at Amazon.com checkout.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% for 14 months | 0% for 14 months | 13.74% - 24.74% Variable | $0 | Good/Excellent |
- Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn unlimited 1.5% cash back on all purchases.
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.74-25.49%.
- 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5
- No annual fee
- Free credit score, updated weekly with Credit Journey℠
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% Intro APR on Purchases 15 months | 0% Intro APR on Balance Transfers 15 months | 16.74-25.49% Variable | $0 | Good/Excellent |
- Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
- Unlimited 1% cash back on all other purchases - it's automatic
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.74 - 25.49%.
- 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5.
- No annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% Intro APR on Purchases 15 months | 0% Intro APR on Balance Transfers 15 months | 16.74 - 25.49% Variable | $0 | Good/Excellent |
+ See More of Our Experts’ Favorite Gas Rebate Cards
If You Want to Save on All Purchases — Top Cash Back Cards
Cash back is the no-muss, no-fuss category of credit card rewards. You use the card as normal for everyday purchases and accrue a percentage of each purchase back, generally 1 – 5% depending on the card you have, and can redeem that accrual toward statement credit or even have a check sent to you in the mail. It’s essentially a rebate on everything you buy — a coupon if you will.
The caveat, of course, is that if you carry a balance, interest charges will eat away at any “savings” you may have earned. But if you pay your balance in full each month, it really is free money. Below are a few of the best cash back cards available today.
- Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn unlimited 1.5% cash back on all purchases.
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.74-25.49%.
- 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5
- No annual fee
- Free credit score, updated weekly with Credit Journey℠
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% Intro APR on Purchases 15 months | 0% Intro APR on Balance Transfers 15 months | 16.74-25.49% Variable | $0 | Good/Excellent |
- INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
- Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
- Plus, earn unlimited 1% cash back on all other purchases - automatically.
- Redeem cash back any amount, any time. Rewards never expire.
- Use your rewards at Amazon.com checkout.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% for 14 months | 0% for 14 months | 13.74% - 24.74% Variable | $0 | Good/Excellent |
- Earn a one-time $300 cash bonus after you spend $3000 on purchases within the first 3 months from account opening
- Earn unlimited 4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through May 2020.
- Receive a monthly statement credit for a Postmates Unlimited monthly membership through Dec. 2019 with the Capital One Savor Card
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- No foreign transaction fees
- Capital One cardholders get access to premium experiences in dining, entertainment and more
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 16.24% - 25.24% (Variable) | $0 intro for first year; $95 after that | Excellent, Good |
+ See More of Our Experts’ Favorite Cash Back Cards
2. Get Familiar with Your Rewards
If you don’t know what rewards your card offers, how will you know to use them? Check with your credit card company for a list of your specific credit card perks and how they work. Make sure to know the rules — some are more complex than others.
For example, if you have a cash back credit card with rotating quarterly categories, this means you earn more cash back on specific purchases within that quarter’s promotion.
Take Discover, for instance, one of the issuers most-known for its 5% rotating categories. Three months of the year, you can earn 5% cash back — 4% more than the standard 1% on all purchases — at places like Amazon.com, wholesale clubs like Sams or Costco, and even gas stations or grocery stores, plus many other retailers and spending categories, as these are just a few common examples. But if you don’t know which months align with which merchants — or fail to opt-in to these quarterly promotions — you’ll miss out on all your card has to offer.
3. Ask About Lesser-Known Perks
Some cards offer perks that you may not even know to ask about. Though this information should be accessible through your credit card issuer’s website and/or the terms and conditions that arrived with the card, make sure to get an exhaustive list of all the perks and protections your card offers. Here are some of the lesser-known perks:
- Concierge services like advance access to concert and theater tickets or help getting reservations at hotels and restaurants (note that credit card companies will usually charge for these types of services)
- Travel benefits, such as rental car insurance (so there is no need to buy additional coverage from the rental car company), trip-cancellation insurance, waived currency conversion fees, and baggage insurance
- Roadside assistance in case of a flat tire, engine issues, etc.
- Extended warranty on eligible purchases when you use your card (usually up to one year)
- Return protection on items purchased with your card that arrive damaged or are not what you ordered
- Price protection if an item bought with the credit card drops in price within a specified time period (usually within 30 to 60 days)
While things like price and return protection are becoming less common in the industry, they’re extremely valuable perks to have (or at least know you have), especially on big-ticket items. Understanding the perks and protections that come with your credit card will help you avoid joining the nearly one-third of cardholders who never redeem their rewards, and potentially save you a lot of money in the long run.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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