Using a credit card doesn’t just have to be about convenience—it can also be a smart way to earn rewards, save money, and even fund future purchases. If used strategically, credit cards with rewards programs can offer cashback, travel points, gift cards, and more. However, many people don’t fully take advantage of these benefits. So how do you make sure you’re getting the most out of your credit card rewards? Here’s what you need to know. The first step to maximizing your credit card rewards is choosing the right card for your lifestyle. Not all reward cards are created equal. Some offer higher cashback on groceries and gas, while others are designed for frequent travelers or online shoppers.

Take the time to review your spending habits and select a card that aligns with where and how you spend most. If you travel often, for example, a card that offers airline miles or hotel points may offer better value than a standard cashback card. Once you have the right card, use it strategically. Concentrate your spending on categories that earn the highest rewards. Many cards offer rotating bonus categories or seasonal promotions—be sure to activate and track these regularly. For example, if your card offers 5% cashback on groceries this quarter, prioritize those purchases on that specific card to maximize your earnings. Some people even use different cards for different types of purchases to take advantage of multiple reward structures.

Paying your balance in full each month is another key factor in maximizing rewards. Carrying a balance can quickly cancel out any benefits you’ve earned due to high interest rates. Make sure you treat your rewards card like a debit card—only charge what you can afford to pay off in full, and set payment reminders to avoid late fees or interest. Don’t forget about signup bonuses. Many reward cards offer lucrative bonuses if you meet a minimum spend within the first few months. Plan larger purchases or recurring payments around this time to meet the requirement without overspending.

These bonuses can sometimes be worth hundreds of dollars in cashback or travel value. Redeem your rewards wisely. Some programs offer the best value when you redeem points for travel bookings, while others provide equal value for statement credits or merchandise. Read the fine print and do the math to determine which redemption method gives you the most bang for your buck. And be sure to use your rewards before they expire—some programs have time limits or inactive account penalties.