This includes recurring bills, groceries, and other regular expenses.

And on the flip side, ensure to always pay your balance in full each month.

Otherwise, any interest charges will outweigh your rewards.

), use the card that provides the highest rewards rate for a particular purchase.

Redeem strategically

Understand the value of your rewards and choose redemption options that offer the best return.

This might meantransferring points to travel partnersor waiting for redemption bonuses.

Look companion cards, too.

Some rewards programs offer multiple cards that can be used together to earn and redeem points more effectively.

Or if you have a small business or side hustle, business rewards cards can offer additional earning opportunities.

Remember: Saving your points might feel responsible, butyou probably shouldn’t be hoarding them.

Review your cards annually to ensure they still align with your spending habits and offer competitive rewards.

If they don’t align with your habits, it could betime for a new card.

If you’re a frequent traveler, a travel rewards card might be ideal.

For everyday purchases, a cash back card could be more suitable.

We break down the differences between cash back, points, or milesrewards cards here.

Evaluate the rewards structure:Compare earn rates across different cards.

Some offer flat-rate rewards on all purchases, while others provide higher rates in specific categories.

Choose the structure that will maximize your rewards based on your spending patterns.

Consider the sign-up bonus:Many cards offer substantial welcome bonuses for new cardholders.

Consider the annual fee:Weigh the card’s benefits against any annual fee.

Premium cards often have higher fees but may offer more valuable perks.

Ensure the rewards and benefits outweigh the cost.

These can add significant value to the card.

You want to choose a card that aligns with your financial objectives.

If you’re saving for a specific trip, a co-branded airline or hotel card might be beneficial.

For general savings, acash-back cardcould be more appropriate.