6 ways to increase your cash-back rewards

Remember the days of clipping physical coupons to save? Or throwing change into a coin jar and then piling up individual 50 cent penny rolls? You don’t have time for that. Luckily, as a credit card holder there are strategies that can help you earn more rewards without sacrificing the weekend organizing the ol’ coupon book.

Credit cards are a lucrative financial tool to have in your wallet (and your digital wallet). Not only do you have flexibility in payment, but you can manage your card online or in an app, and you can earn rewards like cash back. With a credit card management app*, it’s so easy to redeem those cash back rewards with just a few taps on your mobile device. Now you can do all your banking — like using rewards to help pay your bills — whether at home on your couch or on a plane heading off to a vacation that you bought using your cash back rewards.

Read on to learn more ways to maximize credit card rewards.

Whether this is your first rewards card or you’re a seasoned vet, it’s important to keep the following best practices in mind when it comes to credit card management and spending:

Pay your balance in full every month. If you’re carrying a balance month to month, you could be shooting yourself in the foot in terms of earning rewards points. The interest charges are going to significantly eat through your earning potential as well as negate any sign-up bonuses you received. Take a look at the examples below:

Keep your credit utilization low. Resist the temptation to spend more than you normally would just to earn bonus points. Overusing your card can spiral out of control quickly and put you into serious debt. Additionally, using more than 30% of your available credit can bring your credit score down. So try not to overdo it.

All rewards-earning cards are not created equal, so take your time and pick a card that works well with your unique type of spending. Some cards require more strategizing than others to reap the benefits, so make sure you shop around and read the fine print before making a decision. Here are a few types of credit cards you’ll likely come across:

• Flat rate cash-back: These cash-back cards give customers cash back at a flat percentage rate for all eligible purchases. In the above example, the customer earned $15 on a $1,000, purchase or 1.5% cash back.
• Tiered rewards: Rather than a flat rate, companies also offer rewards on certain purchase categories. For example, this month you might earn 5% at the grocery store and 3% at restaurants.
• Travel rewards: With a travel rewards card, you accrue points on every purchase you make. But instead of getting cash back, you earn points to book flights and hotels.
• Cards with an annual fee: Cash-back cards typically don’t have an annual fee. However, there are some that do and offset that cost with higher reward percentages than typical cash-back cards. You’ll have to do the math to make sure it’s worth the fee.
• Store credit cards: These cards tend to offer high reward percentages because normally you’re only allowed to redeem your points with the company’s brands.

While you’re shopping around, pay attention to special rewards credit card offers and promotions. Many companies run limited-time offers with big benefits. Of course, the credit card company is trying to entice you to sign up, but if the terms and conditions of the card are right for you and you get a sign-up bonus, why not? Keep in mind that opening up too many credit cards could impact your credit score.

If you’re an existing customer, go ahead and subscribe to the email list (or stop sending them to your junk folder). Your credit card company may be running a “refer-a-friend” promotion where you get rewarded for sharing the wealth. Take a few minutes to scan your physical mailbox, too — the stuff you consider junk mail may just pay for your next vacation.

Pro tip: If you don’t want a cluttered inbox, create a “promotions” tab or a separate email account dedicated to special offers.

There are independent websites and apps that offer customers cash back for shopping through them rather than directly with a retailer. Sites like Rakuten ™, Dosh^®, and BeFrugal^® receive a commission from retailers when you shop through their site or app, and they share that commission with you by giving you cash back on each order. Simply switching the site or app you shop through could earn you cash for little effort.

You don’t need to increase your spending to earn credit card rewards. Read that again. You make plenty of purchases already when you’re filling your gas tank, paying bills, or ordering take-out to maximize credit card rewards. Consider using your favorite cash rewards card to pay for these common purchases and watch the rewards add up. Writing a check or swiping your debit card doesn’t earn you points, so why not use a payment method that actually benefits you? Just don’t forget to pay that bill off each month! Schedule an automatic payment of your monthly statement balance to keep you in the black.

Take a look at the cash-back calculator below and enter your monthly expenses. You might be surprised at how much earning potential you have.

If you’re planning a future trip with your friends, you can get creative with earning cash back. Consider booking flights and hotels with your rewards credit card and having your friends transfer the cash to you. Apps like Zelle® make transferring money safe and easy. This strategy isn’t just limited to vacations: If you’re splitting the cost of a gift with friends or coworkers, offer to pay with your card and rack up those points!

Pro tip: You’ll definitely want to make sure you have the money up front before charging your card. Life happens — and you don’t want to be stuck with the bill.

If you already have a credit card that offers cash-back rewards, give it a try for a month to see if it works for you. However, maximizing your credit card rewards doesn’t mean spending more than you normally would; rather, it’s being strategic about what you’re already spending.

Want to earn 1.8% cash-back on all your purchases?** Click to learn more about the Citizens Cash Back Plus™ World Mastercard^® to maximize credit card rewards.