How to maximize credit card rewards

Once you’ve found a rewards credit card that suits your lifestyle and spending habits, you can use it to earn cash back or miles. But in addition to making eligible purchases, there’s more you can do to maximize rewards and get value from your card. 

What you’ll learn:

• Whether you like to travel or stay home and cook, a rewards credit card can help you make the most of your regular purchases. 

• You can maximize rewards by knowing your card’s terms and conditions, combining complementary credit cards and planning your purchases to qualify for bonuses.

• Paying your balance in full each month can help you avoid interest charges, which could otherwise offset any rewards you may earn.

In general, there are three types of rewards cards.

1. Cash back cards let cardholders earn a percentage of what they spend.

2. Travel rewards cards allow cardholders to earn miles or points and may offer elevated rewards for travel-related purchases.

3. Points cards let cardholders earn points instead of miles or cash back.

Paying off your balance in full each month can help you get the most from your rewards card. That’s because the value of your rewards could be offset or outweighed if you carry a balance and accrue interest.

Some cards give you the chance to earn a higher rate of rewards on certain purchases. For example, eligible Capital One cardholders can earn elevated rewards through Capital One Entertainment and Capital One Travel.

If you have multiple credit cards, you could maximize your rewards by spending where you can earn the most. Take the Capital One Venture X and Savor cards, for example: You can earn 5X miles on flights and vacation rentals booked through Capital One Travel when using your Venture X card. And during the trip, you could earn 3% cash back when you use your Savor card for dining out or groceries.

If you’re a new cardholder, you could earn extra rewards based on your spending. For example, new Venture X cardholders can earn 75,000 bonus miles when they spend $4,000 on purchases within the first three months from account opening.

Your card’s terms and conditions should have information about earning and redeeming rewards. You can look for details on limitations and expirations. With Capital One, there’s no limit on how much you can earn, and your rewards are yours for the life of the account.

Your issuer may offer other ways to redeem rewards beyond basic statement credits. For example, Capital One lets you use your rewards through Amazon.com and PayPal®. You can also redeem rewards for gift cards.

Understanding the details of your card can help you take advantage of your credit card rewards. Whether your idea of a good time is going out on the town, traveling the world or staying in, Capital One has a rewards card that may fit your lifestyle.

• See if you’ll be approved with 100% certainty for rewards cards, with no harm to your credit scores. 

• Explore travel and miles rewards credit cards with unlimited miles you can actually use. 

• Earn unlimited cash back on every purchase, every day, with a cash rewards credit card.

• Earn unlimited cash back whether you’re going out or staying in, with a dining and entertainment credit card.