Maximizing Category Bonuses: Top Tips for Everyday Spending
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Credit cards with bonus categories allow you to earn more rewards for your everyday purchases. Whether it’s dining, groceries, gas, or travel, using the right card for the right purchase can significantly boost your rewards. Here’s how to maximize your category bonuses and make every dollar count.
1. Understand Your Spending Habits
The first step to maximizing rewards is understanding where you spend the most. Do you dine out frequently? Spend a lot on groceries? Or maybe you’re a frequent traveler? Identifying your top spending categories will help you choose the right cards.
For example, one card offers 4% cashback on dining, while another provides 5x points on groceries up to $12,000 annually. By pairing these cards, you can maximize rewards across multiple categories.
2. Use Cards with Rotating Categories
Some credit cards feature quarterly rotating bonus categories that offer higher cashback or points on specific types of purchases. These categories often include groceries, gas stations, and online shopping.
For instance, one card might offer 5% cashback on gas purchases from January to March and then switch to 5% on Amazon purchases from October to December. To take full advantage, set a reminder to activate these categories each quarter.
3. Leverage Multipliers for Travel and Dining
Travel and dining are two of the most common bonus categories for premium rewards cards. For example, one card offers 3x points on travel and dining, including flights, hotels, and even food delivery services. Another card provides 2x points on all travel purchases, making it a great backup for broader travel spending.
4. Don’t Overlook Niche Categories
Some cards offer bonuses in less common categories, like streaming services, fitness memberships, or ride-sharing apps. For example, a specific card provides 3% cashback on streaming subscriptions like Netflix and Spotify, while another gives 4% on transit, including taxis, buses, and tolls.
5. Stack Rewards with Loyalty Programs
Maximize your rewards by stacking them with loyalty programs. For example, if your card offers 5% cashback on groceries, link it to your grocery store’s loyalty program for additional discounts or points. Similarly, some travel cards allow you to earn both airline miles and credit card points when booking flights through the airline’s portal.
6. Monitor Spending Caps
Many cards with high bonus rates have spending caps on their bonus categories. For instance, a card might offer 5% cashback on groceries but only up to $1,500 per quarter. Once you hit the cap, the rate drops to the base earning rate. Keep track of your spending to ensure you’re maximizing your rewards without exceeding the limit.
7. Pair Multiple Cards for Maximum Rewards
Using multiple cards allows you to cover a wider range of bonus categories. For example, one card could earn 5% on groceries, while another earns 3x points on travel. By strategically using each card, you can maximize rewards across all your spending categories.
Conclusion
Maximizing category bonuses is one of the easiest ways to earn more rewards without increasing your spending. By using the right cards for the right purchases and keeping an eye on rotating categories and spending caps, you can make the most of every dollar you spend. Take the time to evaluate your spending habits, and watch your rewards add up quickly.
Points Pathfinder has partnered with CardRatings for our coverage of credit card products. Points Pathfinder and CardRatings may receive a commission from card issuers.
