How to be a rewards credit card power user

Credit card rewards programs can be a goldmine if you know how to navigate them right. Whether you’re a frequent flyer or a cashback connoisseur, there’s a way to make your credit card work harder for you. Let’s dive into how you can become a power user of credit card rewards programs and get the most bang for your buck!

Choose the right card for your lifestyle

First things first, pick a credit card that aligns with your spending habits and lifestyle. Are you a travel enthusiast? Look for a card that offers travel rewards and perks such as flights or complimentary travel insurance . Prefer cashback or points for everyday purchases? There are credit cards for shopping rewards too. 

Check out the winners of the Mozo Expert Choice Awards for Credit Cards 2024 to find top-rated options that could suit your needs. These awards highlight the best in class, whether you’re after low fees, premium perks, or the top  rewards program.

Understand how rewards are earned

Each  card has different ways of earning rewards. Some offer higher points for specific categories like groceries, dining, or fuel. Make sure you understand how to maximise your points. For example, if your credit card offers double points on dining, use it every time you eat out.

Take advantage of sign-up bonuses

Many credit cards offer generous sign-up bonuses, but they often come with spending requirements. Plan your big purchases around these bonuses to meet the threshold and score those extra points or miles. Just remember, don’t spend more than you can afford to pay off in full each month.

Redeem wisely

Points can be redeemed for a variety of rewards, but not all redemptions offer the same value. Mozo’s winning travel credit cards can help cut down holiday costs with benefits like complimentary travel insurance and zero foreign exchange fees according to Mozo Expert, Peter Marshall.  But if travel isn’t in your plans, look for a card that offers good value on cashback, gift cards, or products.

Pay attention to fees

Some of the best rewards cards come with annual fees. Make sure the rewards you earn outweigh the cost of the fee. If you’re not maximising the rewards, it might be worth considering a  no annual fee card instead. The Mozo Expert Choice Awards feature several no annual fee cards that still offer competitive rewards.

Stay on top of your spending

It’s easy to get carried away chasing rewards, but always make sure you can pay off your balance in full each month. Carrying a balance can quickly cancel out the benefits of any rewards you earn due to high interest charges. Keep your spending in check and enjoy those rewards guilt-free.

Keep your card active

Some rewards programs require regular activity to keep your points from expiring. Make small purchases occasionally to keep your account active and your points safe. Setting up a small recurring bill to be paid with your rewards credit card is an easy way to ensure you don’t lose your hard-earned points.

Stay informed

Rewards programs can change their terms on occasion, so stay informed about any updates or new opportunities to earn and redeem points. Sign up for provider emails and stay in the loop with MoneyZone for the latest updates on the best credit card deals.

By following these tips, you have the potential to become a master of your credit card rewards program and make your spending work harder for you. 

Don’t forget to check out the Mozo Expert Choice Awards for Rewards Credit Cards 2024 to find the top cards that can help you maximise your rewards.