How to Get the Most Out of Your Credit Card Rewards in 2021

TORONTO, March 30, 2021 (Newswire.com) - You don't need to be a points savant to get the most out of your credit card. Being strategic about the credit cards you apply for and how you use them can help you earn the best Canadian credit card rewards this year.

5 ways to get the most out of your credit card rewards

Here are five ways to get the most out of your credit card rewards:

1. Pick the right card for you

Taking a close look at your spending habits can help you pick the best rewards card. See what category you spend the most money in and select a card that has attractive rewards in that category. For example, do you travel often for work? Picking a travel rewards card with extra points or perks for flights or hotels can help you earn the most points for your lifestyle.

2. Be strategic about when you apply

Since you only have a certain amount of time to register for sign-up bonuses, you'll want to make sure you apply at the right time. If you know you have a couple of big purchases coming up that will make it easy to qualify for the bonus (i.e., spending $1,000 in your first three months), applying for a card prior to your spending might be a good choice. 

3. Use your card for everyday purchases

Using your card for everyday purchases, such as groceries, can help you earn rewards without spending extra money on items you don't actually need. Remember: purchasing just to earn points is never a good idea. Although perks and rewards are great, they're not going to make up for any accumulated debt.

4. Redeem rewards strategically

Different redemption methods assign different values to points. For example, some travel cards offer better deals on certain airlines. Make sure to take time to compare your different options so you can get the most out of your rewards.

5. Pay your balance in full

You should always try and pay your balance in full each month. Failure to do so could cause you to accrue interest charges that would cancel out any rewards earned.

A few credit card don'ts

Here are a few things to keep in mind when using credit cards for points:

• Don't close old cards after you open new ones: This can lower the average age of your accounts, which is one of the factors that goes into your credit score. However, closing a card you don't use that has an annual fee might be an exception.

• Don't apply for too many cards at once: Multiple applications in a short amount of time can ding your credit score and make you appear risky to lenders.

• Don't use your entire card balance: Your credit utilization ratio is the amount of available credit compared to the amount you're using. You should never utilize more than 30% — doing so can negatively impact your credit.

Source: iQuanti, Inc.