Credit cards are a handy payment tool with a host of enticing offers. They help you purchase a host of products and services without needing cash on hand.

The convenience of credit cards isn’t the only thing going for it. Many issuers promote certain offerings and rewards to entice new users to jump in and use their catalogue of credit cards.

Many credit card providers set up a credit card rewards system for this very reason. They want more people to swipe their credit cards, and they incentivise them by providing special points to reward everyday spending.

These points can be converted into prizes and other cool perks. The type of rewards you can get from these points would depend on the card type itself. Many of these points can be converted into hotel stays, dinners, and even flights.

If you’ve been overlooking your credit card’s point system, then you’re missing out on a tonne of cool perks. Using your credit card often and paying it off on time means that you’ve got at least some points you can redeem or save.

Here are six ways you can maximize credit card points when you shop.

1. Understand Your Card’s Reward Structure

Not all credit cards provide the same set of rewards. In fact, some credit cards don’t offer rewards at all, so be sure to check what you’re signing up for before securing a card.

If you have confirmed that your credit card has a rewards system, It’s important to know the differences between various credit cards and their reward system. This way, you can tailor the right approach to maximize the obtainable rewards.

The first classification to know is flat-rate cards versus bonus rewards cards. The former grants the same amount of points per transaction, while the second type has specific increased earning rates for certain categories like groceries, dining, or travel.

Secondly, it’s important to know whether your card accumulates points, miles, cash-back rewards, or a combination of the three.

Most credit card issuers have an online website where you can browse through a rewards portal for your specific card. There, you can see potential rewards and the periods in which you can redeem them.

Want to learn more about knowing when to redeem and spend rewards? See Westpac’s article for more information.

2. Get Cards That Match Your Behavior

If you’re going to get new credit cards, it’s important to do your research and get a credit card that matches your purchasing behavior and goals.

For instance, if you intend to fly often, then getting a credit card with a generous miles package can be ideal.

Conversely, if you buy your groceries at a certain retail shop, then getting a credit card that is partnered with them and has cashback offers is a great way to save a few extra bucks.

The important thing here is to pick a credit card that matches your spending habits and lifestyle goals.

A good way to determine that is by tracking your expenses and seeing which one you spend the most on, whether it’s dining, travel, or groceries. Then, from there, you can pick a credit card that matches your lifestyle.

3. Utilize Bonus Categories

There will be some occasions when credit card providers give bonus points to their users for spending on certain categories.

These categories may or may not be announced depending on the provider, but if they’re regularly announced, do try to stay updated on when these bonuses happen so that you can spend and maximize your points accordingly. You can typically get in the loop when you opt-in for daily newsletters from the issuer.

For instance, if your credit card is offering bonus points for hotel bookings and flights, try to book these things during upcoming bonus periods.

The same goes for groceries, dining, and entertainment options. This way, you can score more points than usual, bringing you closer to your reward goals.

It’s also important to consider using your credit card as much as you can. This way, you can get more points—especially during point-earning periods.

4. Buy in Partnered Shopping Portals

Some stores and marketplaces are affiliated with certain types of credit cards. If you want to accumulate more points, it’s in your best interest to buy products from these partnered retailers instead of competing retailers.

To look for shopping portals, look at your credit card account online and look at retailers through their catalogue offerings.

The prices of items in the portals are the same as actual retail prices, so you don’t have to worry about excessive markups. If multiple portals are offering the same product, compare the prices and value and see which one best fits your needs.

That said, you should try to avoid falling under the rabbit hole of excessively buying either. This habit is a good financial habit only if you map out your spending wisely.

5. Pay Your Credit Card Balance on Time

If you want to maximize your credit card points, you have to look after all aspects of your financial health. This means that you have to focus on not falling on your monthly debts.

Making timely payments can positively impact your credit score, improving your chance of approval for credit cards with better reward schemes.

Furthermore, a history of making full monthly debt payments also shows lenders and credit card providers that you can pay off your debt. And not having enough money on hand is no excuse, as there are ways you can pay debt using other credit cards.

This makes you a high-value customer in their eyes, granting you access to the unrestricted range of reward offerings.

There’s also the bonus of a lack of accrued interest rates. This helps keep your finances in top shape, which is good for both you and the lender.

6. Develop a Reward Redeeming Strategy

While it’s natural to feel impulsive and redeem rewards that look nice on a whim, having a game plan when redeeming your points makes the process much more fulfilling.

A good strategy is to pick a goal and work your way backwards to know how long it’ll take for you to actualize your goal. Along the way, you can take advantage of time-limited deals and the like.

This “goal” can be anything personally interesting to you. It could be the best seat on a flight to Europe or a wall-mounted full-screen 4K television. Whatever the goal, be sure to familiarize yourself with your card and know how you can take advantage of it accordingly.

Points can also expire if left untouched for some time. The last thing you’d want is for your points and miles to be fully removed from your account.

As such, be sure to keep track of your points and their expiry dates so that you can utilize them efficiently given the time that you have. If you see that you’re unable to reach your goal on time, you can pivot to another goal—just don’t waste those hard-earned points!

The post 6 Ways to Maximize Credit Card Points when Shopping first appeared on Stuff Parents Need.