I Wrote About Credit Cards for Years: Here's My Credit Card Rewards Strategy
This is how I maximize cash back and points for various purchases and leverage premium card benefits such as airport lounge access and annual fee waivers for active-duty military members.
Before I became editor of Kiplinger Personal Finance Magazine, I spent many years writing about credit card rewards, and it was one of my favorite topics to cover. I enjoyed tracking the newest offers from issuers and gauging whether various cards were worthy of consideration.
My time on the credit card beat also informed my own strategy as a rewards card user. I charge most purchases on a card that has no annual fee and offers 2% cash back on all spending. (And, practicing what we at Kiplinger preach, I don’t charge more on it than I can afford to pay off each month.)
My husband, Tom, is also on the account, and together, we earn hundreds of dollars in cash back each year, which we deposit into our checking account.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Otherwise, I put restaurant and travel purchases on a card that offers extra points on each dollar spent in those categories. When I’m ready to exchange the points for rewards, I check the redemption values to make sure I’m getting a healthy return.
Many cards offer varying point values depending on how you redeem the rewards, so it’s worth doing the math.
My advice: Aim to get a value of at least 1 cent per point. Or, in other words, each 100 points should be worth at least $1. American Express Membership Rewards points, for example, are worth a penny each if you use them to book flights through Amex Travel, but only 0.6 cents each if you exchange them for statement credits.
Although rewards rates drive most of my decisions on which card to use for a purchase, I consider the card’s additional benefits, too.
When buying electronics or appliances, for example, I often charge them to a card that offers an extended warranty, in case the item breaks down shortly after the manufacturer’s warranty expires.
Premium rewards credit cards
I keep a couple of premium travel cards in my wallet, too. Thanks to Tom’s status as an active-duty military member, he qualifies for a waiver of the annual fee on some credit cards, and the benefit extends to me as an authorized user on his accounts.
For us, taking advantage of the many perks premium cards offer while bypassing annual fees in the hundreds of dollars is a no-brainer. (After Tom retires from military service, however, we’ll have to assess whether the annual fee is worth paying.)
One of the best benefits has been complimentary entry into airport lounges. Along with offering access to lounge networks such as Escape and Priority Pass Select, some card issuers are opening their own lounges, too.
Chase, for example, has been expanding its network of Sapphire lounges. Over the summer, I visited the sleek, expansive lounge Chase recently opened at Philadelphia International Airport. I ordered a fresh bowl of noodles with vegetables, which a server delivered to my table restaurant-style, and my kids played arcade games and shuffleboard while we waited out a three-hour flight delay.
Free wine, beer and cocktails, shower rooms, and private rest pods are other amenities you’ll find at many lounges run by issuers such as Amex, Capital One and Chase.
Judging by the responses to our annual Readers’ Choice Awards, many of you use rewards cards, too. If you’d like to share your strategies to maximize rewards or highlight your favorite perks, feel free to drop me a line.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
-
Trump Reshapes Foreign PolicyThe Kiplinger Letter The President starts the new year by putting allies and adversaries on notice.
-
How to Plan a (Successful) Family ReunionFrom shaping the guest list to building the budget, here's how to design a successful and memorable family reunion.
-
These Unloved Energy Stocks Are a BargainCleaned-up balance sheets and generous dividends make these dirt-cheap energy shares worth a look.
-
How to Plan a (Successful) Family Reunion
From shaping the guest list to building the budget, here's how to design a successful and memorable family reunion.
-
Does Your Car Insurer Need to Know All Your Kids? Michigan Cases Raise QuestionWho you list on your policy matters more than most drivers realize, especially when it comes to who lives in your home.
-
Is Direct Primary Care Right for Your Health Needs?With the direct primary care model, you pay a membership fee for more personalized medical services.
-
Smart Ways to Share a Credit CardAdding an authorized user has its benefits, but make sure you set the ground rules.
-
Consider These 4 Tweaks to Your 2026 Financial Plan, Courtesy of a Financial PlannerThere's never a bad time to make or review a financial plan. But recent changes to the financial landscape might make it especially important to do so now.
-
We Know You Hate Your Insurance, But Here's Why You Should Show It Some LoveSure, it's pricey, the policies are confusing, and the claims process is slow, but insurance is essentially the friend who shows up during life's worst moments.
-
6 Financially Savvy Power Moves for Women in 2026 (Prepare to Be in Charge!)Don't let the day-to-day get in the way of long-term financial planning. Here's how to get organized — including a reminder to dream big about your future.
-
Countries That Will Pay You to Move: Cash Grants, Incentives and What to KnowExplore real relocation incentives — from cash grants and tax breaks to startup funding — that make moving abroad or to smaller towns more affordable and rewarding.
