Updated: Apr 27, 2023

How to Maximize Your Credit Card Rewards Without Overspending

How to get the most out of rewards credit cards and earn more points without spending more money.
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Collecting points, bonuses, and other rewards by using a rewards credit card can be exciting, fun, and addicting.

However, there are many ways to rack up the points without making extra purchases, whether you're looking for cash back, travel miles, or other perks.

The trick is in finding ways to turn normal, non-credit card expenses end up as point-earning purchases on the card.

Here are a few ways to do it, but with a warning that some of the methods require discipline or could lead to added spending and bigger balances.

Do The Unthinkable, But Carefully

In general, it can be a very bad practice to charge consumable items like groceries, gas, and other regular purchases on rewards credit cards, unless those expenses are being paid in full each month.

The problem isn't that charging groceries or paying the electric bill with a credit card is inherently worse than charging an emergency purchase or something similar.

The issue lies in poor planning and overspending because the cash which would have been used for groceries or other consumables gets allocated elsewhere after those expenses get charged to the card.

Budget to avoid interest charges

With a good system, the money for the consumables gets paid toward the card each month.

If you want to earn extra reward points on your credit card by putting regular budget items onto it, open a separate, free savings account just for those budget items.

By setting a budget and limit each month, you'll know how much you can put on the card, and you'll have the money handy to pay off the expenses each month.

You won't earn any real interest on the money, but you'll earn reward points, and having the account ready to cover the expenses will help you stay organized.

'Let Me Have The Check!'

With this strategy, you pay for group purchases, such as a shared dinner bill, on your card, and everyone else hands over their cash to you.

The money is dutifully applied toward the card's payment for the month, reward points were collected on the purchase, and no extra money was spent.

Look for opportunities to make bigger purchases for friends who are paying cash for vacations, gadgets, home goods, lawnmowers, and the like.

If you offer some kind of reward for their help (cooking dinner, helping around the house or with fixing things) you might be more likely to turn some of those friends into loyal helpers in your quest for rewards points.

The Unavoidable Expenses

When it comes to common living expenses that you have to pay, such as utilities and rents, billers are quick to ask for your bank account number.

There's a good reason for it. They don't have to pay the processing fee for accepting credit card payments.

But, you're likely to have the option to pay with credit cards.

This is likely the case for your utilities (e.g., electric, gas, phone, the Internet, etc.). These recurring expenses can add up to plenty of rewards.

Your rent payments can also generate rewards but it's much more difficult because landlords and property managers will probably charge a percentage fee for accepting credit card payments.

Using your credit card for paying rent would make sense only if the rewards amount exceeds the convenience fee.