Using credit cards is not just about spending; it’s about smart spending. Credit cards are not just a convenient payment method; they are a valuable tool that can help you earn rewards, cash back, and perks on your everyday expenses.
In this guide, we will dive into specific strategies for maximizing credit card rewards on everyday expenses like groceries, gas, and more. If you’re a Canadian looking to make the most out of your credit card, keep reading to discover some valuable tips and tricks.
Understanding Credit Card Rewards
Before we jump into the nitty-gritty of maximizing rewards on everyday expenses, let’s start with the basics. Credit card rewards come in various forms, but the most common are points, miles, and cash back. Here’s a quick overview:
- Points: These are often earned in loyalty programs and can be redeemed for travel, merchandise, or other rewards. Some popular points programs include Aeroplan, Air Miles, and Marriott Bonvoy.
- Miles: Similar to points, miles are usually associated with airline loyalty programs. You can earn miles using co-branded credit cards and redeem them for flights, upgrades, or other travel-related expenses.
- Cash back: As the name suggests, cash back rewards offer a percentage of your spending back in cash. It’s the most straightforward type of reward and is often preferred for its simplicity.
Choosing the Right Credit Card
The first step in maximizing your credit card rewards for everyday expenses is choosing the right credit card. Not all credit cards are created equal, and some are better suited for specific spending categories.
Pro Tip: Look for credit cards with higher rewards or cash back rates on categories like groceries, gas, and dining. Many credit cards offer tiered rewards with higher percentages for specific spending categories.
Dedicated Grocery Rewards Cards
If a significant portion of your monthly budget goes toward groceries, consider getting a credit card specifically designed for this category. These cards offer higher rewards or cash back rates when you shop at supermarkets or grocery stores. Cards provided by insitituions such as PC Financial can be a game-changer when it comes to earning rewards on grocery purchases. Their PC Mastercard offers up to 25 points on every $1 spent on Shoppers Drug Mart.
Pro Tip: Some grocery rewards cards offer additional perks like free delivery or discounts at partnering grocery stores. Be sure to explore these benefits.
Fueling Your Savings with Gas Rewards
Gasoline is another everyday expense that can earn you valuable rewards. With the soaring gas prices, it is more than important to look for credit cards that offer cash back or bonus points for fuel purchases.
Pro Tip: Some credit cards offer yearly cash back on gas purchases, while others have rotating quarterly categories. Be aware of the terms and maximize your rewards accordingly.
Dining Out and Entertainment Rewards
If you frequently dine out or enjoy entertainment activities, there are credit cards tailored to these expenses. You can earn extra rewards using these cards at restaurants, cafes, theatres, or streaming services.
Pro Tip: Some credit cards offer dining-specific benefits, like access to exclusive dining events or discounts at partner restaurants.
Multi-Purpose Rewards Cards
If you prefer simplicity and don’t want to manage multiple credit cards for different spending categories, consider a multi-purpose rewards card. These cards offer decent rewards on various spending categories, making them versatile choices.
Pro Tip: Look for multi-purpose rewards cards with no annual or low annual fees to maximize your savings.
Rotating Category Cards
Rotating category credit cards offer elevated reward rates on specific spending categories that change periodically. These cards are excellent for maximizing rewards in different areas throughout the year.
Pro Tip: Keep track of the rotating categories and plan your purchases to make the most of these cards.
Take Advantage of Sign-Up Bonuses
Many credit cards offer sign-up bonuses to attract new customers. These bonuses can be substantial and provide an excellent opportunity to earn a significant number of rewards quickly.
Pro Tip: Pay attention to the spending requirements to qualify for the sign-up bonus and ensure they align with your usual expenses.
Use Online Portals and Apps
Some credit card issuers have online portals or mobile apps that offer additional rewards when you shop through them. You can earn extra cash back or points by online purchases via these platforms.
Pro Tip: Check if your credit card issuer has an online portal or app and use it for your online shopping to earn bonus rewards.
Stay Informed About Special Offers
Credit card issuers often run special promotions and limited-time offers. These can include bonus cash back, extra points, or discounts at specific retailers.
Pro Tip: Sign up for email alerts from your credit card issuer to stay informed about special offers. You can also follow them on social media for updates.
Maximizing credit card rewards on everyday expenses like groceries, gas, and dining is not rocket science, but it does require some strategic thinking. By choosing the right credit card, focusing on cards with rewards in your key spending categories, and staying informed about special offers, you can significantly boost your rewards and make your everyday expenses work for you.
Remember, credit cards are a tool, and like any tool, they should be used responsibly. Avoid overspending or carrying a balance, and you’ll be well on your way to enjoying the benefits of credit card rewards.
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