If you’ve been on the site for a while, you probably know I’m a big fan of credit card rewards. I’ve famously explained my method of earning $900/year in credit card rewards. I’ve currently got 3 cards myself (a travel rewards, an airline and a hotel card) and my wife has 3 herself (a travel rewards, a cash back and an airline card). Although I’m against carrying any form of credit card debt (aka, you better pay off that bill in full each month), credit cards can offer some incredible perks in the form of cash back or travel rewards! Unfortunately it’s not just enough to have a solid credit card, you have to come up with a solid spending strategy!

Determine what you value

Before you’re able to come up with your ideal credit card strategy, you have to figure out what type of rewards you’d like. Are you after that dream vacation or are you more interested in getting cash back? Do you find yourself loyal to a certain airline brand or more interested in just getting from A to B? You won’t be able to get the rewards you want without the right credit card! Also, feel free to check out my post on picking the Best Credit Card for you!

Do your homework, know the terms and policies

After you’ve picked the right credit card (or maybe more than one) be sure to get very familiar with the terms of the card. How exactly do the rewards work? How do you earn them, how do you spend them, and how to you maximize your rewards? Can you get better rewards by shopping at a certain store or type of store or maybe get bonus points by shopping through an online portal? Get to know the ins and outs of your card to ensure you’re well equipped to maximize your rewards.

Formulate your strategy

Once you’ve a) selected your card, and b) read the nitty gritty details on how to earn/spend rewards, start formulating a strategy. Now, there are two basic strategies that you can follow, neither one is necessarily right, but there is one that I try to follow. The first is using the card that’ll maximize your points the most. If you’re at a gas station and can get 3% back from your Bank of America Cashback card, then you use that card. Or if you’re flying American Airlines, you’d use your American Airlines credit card to get 2x AAdvantage Miles on that purchase. The pros of this strategy are that you’re truly maximizing your spending and getting the most rewards you can. However, I personally try to stick with one card, my Venture card. My Venture card essentially gives me 2% cash back (that I can spend on travel purchases) and so I figure that having all my credit cards points in one place is more desirable than many. This allowed me to easily redeem 120,000 miles for my $1,200 recent flight to Europe. Depending on your goals and the credit cards in your wallet right now, give some thought to which strategy makes sense to you. Is it really worth it to have the extra 1% on gas and then having to figure out how to spend those points? Or maybe is having all your points in one place more worthwhile having them easier to spend?

Stick to it!

Despite having 3 credit cards, I put about 95% of my spending on one card. I keep the other two for the perks (like a free night at a hotel from my hotel card). Ensuring success in your credit card rewards plan necessitates sticking to your plan! Don’t be distracted by 2x points here if those points aren’t what you’re after! At this point, you’ve done your homework, you’ve crafted your strategy so be sure you stick with it to ensure your plan is followed through!

By following these steps, you’ll be getting closer to that dream vacation, that dream purchase or that dream whatever you’re after! Finally, I leave you with one of my credit card rewards mantras; it’s not about earning the points, it’s about spending them!

If you’re interested in learning more of the tricks of the trade, consider checking out one of my favorite sites; The Points Guy. Great insight on credit card rewards and how to maximize them!