“How to Organize and Optimize Your Rewards Credit Cards”

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Maximize Your Credit Card Rewards with O1ne Mortgage

At O1ne Mortgage, we prioritize consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.

Understand How Your Cards’ Rewards Programs Work

Rewards credit cards may offer cash back, points, or miles on your everyday purchases. However, the rules and features can vary depending on the card. Before applying for a rewards credit card, it’s crucial to understand the following attributes:

Rewards Currency

Check if the card offers cash back, points, or miles. Some cash back credit cards offer flexible points with a wider range of redemption options. Determine whether you’re earning rewards with the card issuer or a co-branded partner, such as an airline or hotel chain.

Rewards Rates

Your credit cards may offer flat-rate, tiered, or rotating rewards rates. You may need to select categories for bonus rewards or activate your eligibility. There may also be limits on how much you can earn in bonus cash back, points, or miles.

Redemption Options

Understand how you’ll be able to redeem the rewards you earn. Travel credit cards typically offer more flexible rewards programs than airline and hotel loyalty programs. The value of your rewards can depend on how you redeem them, and some card issuers allow you to transfer points to other rewards programs.

Card Benefits

In addition to rewards, your cards may offer various benefits. Avoid getting different cards with overlapping benefits and keep track of the perks each card offers so you don’t forget to use them.

Decide Which Card You’ll Use for Each Type of Purchase

Depending on your spending habits, it may be beneficial to use multiple rewards credit cards for different purchases. One card may offer high rewards on groceries, while another may offer better rewards on gas, dining out, and other expenses. Knowing what your card includes in its rewards categories can make it easier to decide when to use each card.

Set Alerts for Your Bill Due Dates

The more credit cards you have, the harder it will be to keep track of your monthly due dates. If your card issuers allow you to pick your due date, setting them all to the same date can help. Otherwise, set up alerts to avoid missing a payment. Consider setting up automatic payments if your income is predictable and you have a buffer in your payment account.

Keep Track of Your Transactions

Check your accounts regularly to understand your spending and avoid overspending. This can also help you spot potential unauthorized transactions. Some budgeting apps allow you to import transactions from all of your financial accounts into one place, making it easier to track your expenses.

Keep Track of All Your Cards

If you have several credit cards, it might not make sense to keep all of them in your wallet. Keep your physical cards in a safe place to avoid loss or theft. When shopping online, avoid saving your card information on websites you don’t shop with regularly to reduce the risk of data breaches.

Don’t Forget About the Annual Fees

Using multiple rewards cards can add value to your spending, but it can get costly if you have multiple annual fees. If you’re consistently getting enough value from each card to cover the annual fee, it can be worth it. However, if you’re not using some cards as much, it may not make sense to continue paying the annual fee.

Check Your Credit Before Applying for Another Rewards Card

If you’re considering adding another rewards credit card to your wallet, get a free credit report and credit score from Experian to evaluate your approval odds. Most of the best rewards credit cards require good or excellent credit, which generally starts at a FICO® Score of 670.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make the best financial decisions!

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