You never need to choose the newest, flashiest credit card because it’s what you see in commercials or promoted online. Instead, choosing the right rewards credit card comes down to how you can earn valuable perks on your everyday spending—whatever that may look like. Here’s how to make the most of your rewards credit cards, as well as what you should look for when you’re shopping for a new one.

Use your card for all eligible purchases

Pay for as many expenses as possible with your rewards card, but always within your budget. This includes recurring bills, groceries, and other regular expenses. Have a solid understanding of the benefits your credit card offers: rewards categories, bonus multipliers, and any partnerships or affiliations that can enhance your earnings.

Meet minimum spending requirements

If your card offers a sign-up bonus, ensure you meet the minimum spend requirement within the specified timeframe to earn the bonus. And on the flip side, make sure to always pay your balance in full each month. Otherwise, any interest charges will outweigh your rewards.

Leverage bonus categories

Keep track of rotating or seasonal bonus categories and use the appropriate card to maximize points or cash back. Make sure you set a reminder to activate your new bonus categories each quarter, or else you’ll miss out on the cash back window. To stay on top the rotating categories, make a note in your phone about the best time to make different purchases.

Stack rewards

If you have multiple credit cards that offer different rewards for specific categories (such as dining, travel, groceries, etc.), use the card that provides the highest rewards rate for a particular purchase. For example, if one card offers 4x points on dining and another offers 3x points on travel, use the appropriate card for each type of expense. You can also combine credit card rewards with store loyalty programs, online shopping portals, or dining programs for extra earnings.

Redeem strategically

Understand the value of your rewards and choose redemption options that offer the best return. This might mean transferring points to travel partners or waiting for redemption bonuses.

Similarly, make sure to use benefits like travel insurance, purchase protection, or airport lounge access to maximize your card’s value.

Look companion cards, too. Some rewards programs offer multiple cards that can be used together to earn and redeem points more effectively.

Or if you have a small business or side hustle, business rewards cards can offer additional earning opportunities.

Monitor your rewards

Keep track of your points or miles to ensure they don’t expire, and stay informed about any changes to your card’s rewards program. Remember: Saving your points might feel responsible, but you probably shouldn’t be hoarding them.

If you’re applying for multiple cards, space out your applications to minimize the impact on your credit score and to take advantage of sign-up bonuses when you need them.

The key here is staying organized: Keep track of which card to use for different purchases, annual fee due dates, and reward expiration dates. Review your cards annually to ensure they still align with your spending habits and offer competitive rewards. If they don’t align with your habits, it could be time for a new card.

How to choose the right rewards credit card

Assess your spending habits: Look for a card that aligns with where you spend the most money. If you’re a frequent traveler, a travel rewards card might be ideal. For everyday purchases, a cash back card could be more suitable. We break down the differences between cash back, points, or miles rewards cards here.

Evaluate the rewards structure: Compare earn rates across different cards. Some offer flat-rate rewards on all purchases, while others provide higher rates in specific categories. Choose the structure that will maximize your rewards based on your spending patterns.

Consider the sign-up bonus: Many cards offer substantial welcome bonuses for new cardholders. Compare these offers, but make sure you can meet the required spending threshold without overextending your budget.

Consider the annual fee: Weigh the card’s benefits against any annual fee. Premium cards often have higher fees but may offer more valuable perks. Ensure the rewards and benefits outweigh the cost.

Check for foreign transaction fees: If you travel internationally, look for a card with no foreign transaction fees to save money on overseas purchases.

Look into additional perks: Many rewards cards come with extra benefits like travel insurance, purchase protection, or airport lounge access. These can add significant value to the card.

Check your credit score: Rewards cards typically require good to excellent credit. Know your credit score and apply for cards you’re likely to qualify for to avoid unnecessary hard inquiries on your credit report.

Read the fine print: Pay attention to details like APR, balance transfer fees, and any restrictions on earning or redeeming rewards.

Weigh redemption options: Some cards offer more flexibility in how you can redeem rewards than others. Again, you should consider whether you prefer cash back, travel miles, or points that can be transferred to various loyalty programs. You want to choose a card that aligns with your financial objectives. If you’re saving for a specific trip, a co-branded airline or hotel card might be beneficial. For general savings, a cash-back card could be more appropriate.