The Chase Freedom® is not currently available to new cardholders. Please visit our list of the best cash-back cards for alternative options.
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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% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- No annual fee
- Travelers face a foreign transaction fee
- Intro APR only applies to balance tranfer
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
Blue Cash Preferred® Card from American Express: 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible 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.
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases 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 and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
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 Card allows you to earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.
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.
The Capital One Quicksilver Cash Rewards Credit Card has no annual fee, cash-back rewards and a generous intro-APR offer, which make it a great option for saving on interest while earning rewards.
- No annual fee
- Low spending requirement for the welcome bonus
- Redeem cash back for any amount at any time
- No foreign transaction fee
- 3% balance transfer fee during the first 15 months your account is open
- No bonus rewards categories
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- 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
- 0% intro APR on purchases and balance transfers for 15 months; 18.49% - 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
Balance transfer fee
- 3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
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.
Check out our list of the best limited-time credit card bonus offers, which is updated on a regular basis. Plus 9 fitness, streaming and other premium memberships you can get for free with select credit cards.
4. Combine points
If you have multiple cards from the same card issuer, there’s a good chance you can combine rewards. This lets you pool points and redeem them for a bigger reward. Typically, you can only transfer or combine rewards with cards from the same issuer and between the same type of cards, such as a point card to another point card.
For instance, Amex allows you to transfer rewards between cards that earn Membership Rewards® points, such as the American Express® Gold Card and the American Express Platinum Card®. Terms apply.
Meanwhile, Chase provides you with the flexibility to transfer points between Ultimate Rewards cards. So you can move points from the Chase Freedom® (earns cash back) to the Chase Sapphire Preferred® Card (see rates and fees) (Ultmite Rewards earns 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.
Don’t miss:
For rates and fees of the American Express® Gold Card , click here.
For rates and fees of the American Express Platinum Card®, 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.
