The Chase Freedom® is not currently available to new cardholders. Please visit our list of the best cash-back cards for alternative options.
Credit cards can provide an array of benefits, from 0% interest financing to free shipping access, but perhaps one of the most lucrative perks is the potential to earn rewards.
Rewards cards come in all shapes and sizes, providing you with cash back, points or miles that you can redeem for statement credits, travel, gift cards and much more. But if you take certain actions, like carrying a balance, you may negate any rewards you earn.
In order to ensure you get the most value from your credit card rewards, CNBC Select provides tips on how you can maximize your cash back, points and miles.
How to maximize credit card rewards
- Use the right card
- Earn the welcome bonus
- Check for limited-time offers
- Combine points
- Pay your bill in full
1. Use the right card
Using a rewards card for all your purchases can help you earn cash back, points or miles. And if you use the right card at the right time, you can maximize the amount of rewards you earn.
Let’s take an example where you have the Citi® Double Cash Card and the Blue Cash Preferred® Card from American Express. Here are the rewards you earn with each card:
Citi® Double Cash Card: 2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill.
Citi® Double Cash Card
Rewards
2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
Welcome bonus
For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
Annual fee
$0
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
16.99% - 26.99% variable
Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
3%
Credit needed
Good/Excellent
Terms apply.
Blue Cash Preferred® Card from American Express: 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases. Cash back is received in the form of statement credits.
Blue Cash Preferred® Card from American Express
On the American Express secure site
Rewards
6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Welcome bonus
Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months.
Annual fee
$0 intro annual fee for the first year, then $95.
Intro APR
0% for 12 months on purchases and balance transfers from the date of account opening
Regular APR
16.99% - 27.99% variable
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7%
Credit needed
Excellent/Good
If you want to earn the most amount of rewards possible, you should use the Blue Cash Preferred Card for groceries, streaming subscriptions, gas and transit. Then use the Citi Double Cash Card for everything else. By using the right card for the right type of purchases, you’ll earn the highest amount of rewards.
This tip only applies if you have more than one card, but even if you only have one, you may want to consider opening another card with different rewards rates.
2. Earn the welcome bonus
Most rewards credit cards offer a welcome bonus after account opening that can help you jump start earning rewards. Rewards cards typically provide bonuses worth over $150 and some cards even provide the chance to earn $750.
Welcome bonuses typically require you to spend anywhere from $500 to $4,000 within the first three months after account opening in order to earn the bonus. For instance, the Capital One Quicksilver Cash Rewards Credit Cardoffers a $200 cash bonus once you spend $500 on purchases within three months from account opening. That's a generous bonus for such a low spending requirement.
But while welcome bonuses can be lucrative, you shouldn't overspend just to earn it. The interest you'd get charged for carrying a balance isn't worth the extra rewards, which we explain more about below.
Capital One Quicksilver Cash Rewards Credit Card
Information about the Capital One Quicksilver Cash Rewards Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Rewards
1.5% cash back on every purchase
Welcome bonus
Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
Annual fee
$0
Intro APR
0% intro APR for 15 months on purchases and balance transfers
Regular APR
17.99% - 27.99% variable
Balance transfer fee
3% fee on the amounts transferred within the first 15 months
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
3. Check for limited-time offers
Card issuers often run limited-time offers that can provide elevated rewards rates. Check that you're signed up for marketing emails from your issuer so you get the latest news.
Recently many issuers provided bonus rewards on groceries and food delivery to meet consumers' increased spending. You may even receive targeted offers that allow you to earn extra rewards for a certain time period.
It's a good idea to take advantage of these offers since they often run for a short amount of time, but can help you optimize rewards.
4. Combine points
5. Pay your bill in full
Making on-time payments is the most important factor of your credit score and essential to getting the most value out of your credit card rewards. Since credit card interest rates are in the double-digits and rewards rates are typically single-digits, carrying a balance can offset your earnings.
To avoid missing out on rewards and accruing debt, pay off your statement balance in full every billing cycle.
For rates and fees of the American Express® Gold Card , click here.
For rates and fees of The Platinum Card® from American Express, click here.
For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
Information about the Chase Freedom® has been collected independently by Select and has not been reviewed or provided by the issuers of the cards prior to publication.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.