We’re only halfway through the year and I’ve already earned more than $2,500 in credit card rewards. Each rewards card we use has contributed between $450 and $875 so far this year.
I achieved this without paying any interest and simply by charging the normal monthly expenses I already pay.
I plan to repeat this strategy throughout the year. Between the two of us, we currently hold more than 10 rewards credit cards and we’re always evaluating the next card to add.
Some of the rewards cards I’ve used recently include:
- Chase Sapphire Preferred – We each have this card and it has returned more than $1,000 in cash back.
- Southwest Cards – When we signed up, each card included two free roundtrip flights.
- Chase Freedom – A dependable card that often offers 5% cash back in rotating categories; one of our first cards for sign-up bonuses.
- Chase Ink Bold – This card delivered a combined $875 in sign-up bonus and rewards after only three months of ordinary use.
- REI – A smaller $100 sign-up bonus, but 5% back on REI purchases and no annual fee. Stacking that with REI membership discounts makes it a strong value.
While I enjoy using rewards cards to capture value, I’m aware many people don’t understand how credit card rewards work or how to take advantage of current offers. Sometimes when I pay with a card, someone warns me against getting into debt — which is a valid concern. Many people simply don’t know how to use credit responsibly to benefit from rewards.
Below are practical tips I follow to earn credit card rewards responsibly. Use them to learn how to leverage cards without risking your financial health.
If you can’t manage credit responsibly, stop reading.
If you struggle to control spending or consistently carry a balance, stop now. The potential rewards are not worth the interest and financial stress that credit card debt can cause.
If you can control your spending and reliably pay your balances in full, continue. Responsible behavior is the foundation of any successful rewards strategy.
Tip: consider using a free financial aggregator to stay on top of accounts and cash flow so you don’t lose track. Such tools help you see all accounts in one place and monitor spending and investments easily.
Only charge what you would normally buy.
It’s tempting to increase spending to hit a sign-up bonus or category threshold, but that undermines the point. Only put on your card the purchases you planned to make anyway. Overspending to chase rewards usually costs more than the rewards are worth.
Related note: it’s helpful to monitor your credit score regularly through a free service so you’re aware of how card activity affects credit.
Pay your balance in full every month.
Rewards are valuable only when you avoid interest. Choose cards with no annual fee when possible and always pay your statement in full before the due date to avoid interest charges.
I have never paid credit card interest because I pay my balances in full every month.
Ask to have the annual fee waived.
If a card charges an annual fee, try to get it waived. Some issuers waive the fee for the first year, and others may agree to waive it if you call and ask. If you can’t get it waived, weigh whether the card’s ongoing benefits justify the fee. If not, consider closing the card, but remember closing accounts can affect your credit score.
Also note that many cards charge the annual fee immediately after account opening rather than waiting a year. To avoid surprises, review the fee schedule before applying. There are many good rewards cards that either have no annual fee or waive it for the first year, so those are often the best starting point.
Choose the right type of rewards card for you.
Rewards cards come in many forms: cash back, travel points, gift card rewards, and more. Evaluate how you’ll redeem points and whether the redemption options deliver real value. Check for expiration rules and transfer options so you don’t lose rewards you’ve earned.
Personally, I prefer cash back for simplicity, but travel rewards can offer great value if you use them strategically. If you plan to redeem rewards immediately, expiration is less likely to be an issue.
Are you interested in earning credit card rewards? Why or why not? What card do you think we should add next?