While modern times and technology see the opening of a massive amount of benefits behind the digital management of credit cards, various digital credit card management tools have definitely done a great job in changing the aspect of handling finances to maximize the benefits with least headache. Here are some tips and tools that can help you get the most out of your credit card rewards.
1. Utilize a Credit Card Management Application
Such applications are, of course, instrumental in managing your rewards, due dates, and spending habits. Apps such as Mint, PocketGuard, and YNAB pull your financial data into one place to help you keep on top of your spending and make sure you’re not losing out on reward points. They tend to remind you of due dates so that you can avoid those late fees yet still manage to keep a rather decent credit score.
They also suggest how you can use your money fully to get the best of everything.
2. Use Reward Tracking Features
Many of them have their own apps with built-in tracking features for the rewards that you are able to earn. In fact, American Express and Chase have developed apps to enable checking of balances, spending category rewards, and even redeeming those rewards by the use of the phone. This can help you stay on top of where your rewards stand and make sure you use your points in time before they expire.
3. Make Spending Categories Work for You
A lot of credit cards offer bonus rewards when spent in given categories—like restaurants, travel, or groceries. Study your spending using digital tools for some time to get an idea of how you could adjust your spending in given categories. Specifically, if you tend to spend cash while dining out, find a card offering the most restaurant reward.
Other tools, including CardMatch and NerdWallet allow you to compare cards by calculating which one will yield the best rewards, based on your spending.
4. Automate Payments and Keep Due Dates
One way is through automation. A majority of credit cards allow you to automatize your payments, where you never miss a due date and late fees or interest charges again. Paying the majority of your bills automatically through numerous apps available in managing your credit card allows headaches linked to management of finances to ease up and lets you focus even more on receiving the rewards.
5. Utilize Sign-Up Bonus Offers
Quite a good number of credit card companies offer large cash bonuses to attract new cardholders for reaching spending requirements within a certain period. Digital tracking tools help track down spending requirements and their deadlines in completing such offers. For example, take one with a $200 bonus after you spend $1,000 in the first three months—Ongoing progress against meeting this requirement is tracked through the budgeting application.
6. Monitoring Credit Card Usage
More than that, digital services will help you count your credit card usage on the spot so that you do not go overboard with expenses. You can track exactly where you are spending your money and make adjustments to maximize rewards from your credit card. Apps like Credit Karma or Experian offer credit score tracking and insights on spending to manage your cards effectively.
7. Redeem Rewards Strategically
Strategic redemptions can make all the difference in the value one reaps from their credit card. The majority of these digital tools and apps actually give very useful guidance on how to redeem your points or cash back. For instance, some of them would compare redemption options available side by side to help you decide where you get a maximum value of reward travel, merchandise, or statement credit.
8. Stay Current with Reward Structure Changes
Credit card rewards can change quite often, so it is to your benefit to know. Take advantage of digital resources online—from credit card company newsletters to personal finance blogs—to stay informed about changing rewards programs or new ways to earn. There are numerous features within digital tools of credit card management that assist in fully benefiting from your rewards and properly handling your financials. You can use apps to track the process of making payments automatically and to redeem those rewards properly—meaning, therefore, the ability to extract full value from using credit cards.