Do you know that you could be earning hundreds of dollars in credit card rewards? Most often, credit cards have some kind of rewards system such as gift cards, cash-back, or airline miles. Still, many people think you can only earn only an insignificant amount. However, NextAdvisor reports that getting 1% back on your purchases is more or less the norm now, [1] but you can earn much more. How? By using a system called rotating rewards that offer higher percentages and bigger cash-back amounts.
Find out the Details About Your Rewards Program
While credit cards with rotating rewards come with the biggest percentages and bonuses, you only get the rewards if you know how and when to get them.
There are time-limited bonuses with rotating rewards credit cards, and every 3 months, or every quarter, you can take advantage of an increased bonus for specific purchases. However, these bonus categories are always different, hence the name “rotating rewards.”
Know the Categories and Make the Right Purchases
When you’re after the biggest bonuses with a rotating rewards credit card, it’s important that you know what purchases will give the largest cash-back percentage. In some cases, you can choose yourself, while other times companies will have a predetermined list of categories.
By knowing which categories offer the biggest percentage, you can accumulate reward dollars much more quickly. If you’re getting 4% cash-back for your weekly groceries, pay with your rewards card. If this specific bonus has ended, use another card.
To find out which rewards have changed every 3 months, go online search to quickly find out the latest offers from a particular credit card company.
Don’t Forget to Activate Rewards Each Quarter
Although free rewards are the name of the game, your credit company doesn’t want to make it too easy for you and lose money in the process. That’s why you should always activate a bonus if you want to get it.
Unfortunately, credit cards won’t notify you when a new quarter starts and when the rewards are different. You have to find out yourself. If you miss this activation period, you can lose quite a lot of money in cash-back rewards, as much as $75.
Use More Than One Credit Card
To maximize your profits and rewards, you should use more than one credit card. In fact, get multiple credit cards with rotating rewards, as well as one with a flat cash-back percentage. [2]
If you have more than one rotating rewards credit cards, you have more categories to earn 5% back on purchases. One such card might be good for gas, another one for groceries, and the third one for clothes, for example. With this method, you can always use the card which offers the highest rewards at any given time.
Stay Informed and Get More Rotating Rewards
Don’t underestimate how much money you can actually earn with cash-back rewards. And while you’re already spending your money, why not get some of it back? When these rewards add up, it can be a nice sum. Just make sure to do your research online, whether to find out about the cards you already have or the ones you can apply for that offer the best rewards.
[1] https://www.nextadvisor.com/credit-cards-rewards/
[2] https://www.fool.com/the-ascent/credit-cards/articles/maximize-rotating-credit-card-rewards/