If the idea of earning points/miles while you shop, dine and go about your daily routine sounds appealing, then keep reading. Transforming everyday purchases into exciting travel opportunities is not just a dream, it’s a reality with the power of credit card rewards. In this blog post, I’ll show you how you can earn credit card points/miles on your routine expenses.
Whether you’re grocery shopping, paying bills, or indulging in online retail therapy, you’ll discover how to maximize your rewards potential and make every purchase count.
First a Few Coveauts
When it comes to using credit cards, you’ll want to make sure of a few things before you go out spending on them. First, you want to make sure that you are paying off your card every month.
If you aren’t paying off your card each month, then more than likely you are going to be paying interest and very high interest at that.
If you are earning 2% back on a purchase but you are paying 25% in interest then it is time to do plastic surgery. You need to take scissors to your credit card.
Secondly, it is important that you are using your card for budgeted items. For example, you should have a budgeted amount for groceries.
Instead of paying cash for the groceries, you should charge it on your credit card and earn points back for the purchase. That is a good use of a credit card.
What you don’t want to do is start using your card for things that aren’t budgeted. Studies have shown that people who use credit cards spend 25% to 35% more than those who pay with cash.
It is less painless to use a credit card than paying with cash. So, it is important to have a budget and then pay for things that you know will come out of that budgeted category for the month. That way your spending keeps in check and you don’t overspend.
Ways to Earn Points/Miles on Everyday Purchases
1. Choose the Right Credit Card
The cornerstone of your journey to earning miles begins with selecting the right credit card. With a multitude of options available, it’s essential to find a card that complements your spending habits. Consider these credit card categories for different types of expenses.
- Travel Rewards Cards: Tailored for people that love to travel, these cards offer bonus points/miles for travel related expenses such as flights and hotels. A couple cards to consider include: the Chase Sapphire Preferred and Capital One Venture Rewards Card.
- Grocery and Dining Cards: Foodies and families can benefit from cards that reward you for grocery store and dining purchases. You can earn 4x the points on dining and grocery stores with the American Express Gold card.
- Gas Rewards Cards: Frequent drivers can earn bonus miles on fuel purchases with cards like the Wells Fargo Propel American Express Card or the Bank of America Cash Rewards cards which both earn 3x the points on gas.
- General Rewards Cards: For versatility, general rewards cards offer a flat rate of miles on all purchases. Options include the Capital One Quicksilver Cash Rewards Credit Card which earns 1.5x the points on all purchases. Another option is the Citi Double Cash Card that earns 2x the points.
2. Take Advantage of Sign Up Bonuses
Capitalizing on credit card sign up bonuses is a fantastic way to kick start your miles accumulation. These bonuses often require you to spend a certain amount within an initial time frame to earn a substantial amount of points/miles.
Plan your applications strategically, aiming to meet the spending requirement by using your card for planned purchases. For example, if you know that you are going to make a major purchase soon then time up the purchase with getting the credit card.
3. Maximize Bonus Categories
Credit cards frequently introduce rotating or fixed bonus categories that earn you extra points/miles. For example, the Chase Freedom card has quarterly rotating categories where you can earn 5x the points for purchases in a given category.
The American Express Blue Cash Preferred card offers a bonus category with groceries. You can earn 6x the points on up to $6,000 spent on groceries each year. It is 1x the points after reaching the $6,000.
4. Link Your Card to Online Shopping Portals
Many credit card companies collaborate with online shopping portals that offer additional miles for purchases made through their platforms.
By linking your card and shopping through these portals, you can earn bonus miles on purchases you’d make anyway.
Examples include the Chase Ultimate Rewards Shopping Portal, American Airlines AAdvantage eShopping mall, and the United MileagePlus Shopping portal to name just a few.
5. Use Your Card for Bills and Subscriptions
From utility bills, medical bills, gym memberships, to streaming subscriptions, put your credit card to work by paying for monthly, quarterly, semiannually or annual expenses.
Not only will you earn points/miles, but you’ll also consolidate your spending onto one card, making it easier to track and manage your finances.
6. Pay with Your Card While Traveling
When you travel, make sure to use your credit card for expenses such as accommodations, dining, and transportation. Not only will you rack up points/miles but you’ll also enjoy the added benefits of travel protections and insurance that many travel rewards cards offer.
Some good cards for travel include: the Chase Ink Business Preferred Card and the American Express Green Card. They both earn 3x the points on all travel.
7. Double Dip with Dining Programs
Certain credit cards offer partnerships with dining rewards programs. By enrolling your card and dining at participating restaurants, you can earn extra miles on top of your regular credit card rewards.
Some programs include: the Delta SkyMiles Dining program, Southwest Rapid Rewards Dining program, AAdvantage Dining program and United MileagePlus Dining programs.
8. Leverage Special Promotions
Credit card issuers often roll out limited time promotions and offers. These could include opportunities to earn bonus miles by meeting specific spending thresholds within a designated period.
For example, with our World of Hyatt credit card we regularly get bonus category offers. They offered 5x the points on gas on the last offer.
9. Automate Recurring Expenses
Streamline your points/miles earning strategy by setting up automatic payments for recurring expenses using your credit card. Things like cell phone payments, insurance premiums and subscription services can all contribute to your points/miles balance.
10. Utilize Family and Friends
Pooling your expenses onto a single rewards credit card with family members or friends can help you reach spending thresholds faster. This tactic is particularly useful if you’re aiming to achieve a significant sign up bonus within a specific time frame.
Final Thoughts
Earning points/miles on everyday purchases is more than just a financial strategy. It’s a pathway to unlocking incredible travel experiences.
By choosing the right credit card, capitalizing on bonus categories, and aligning your spending with rewards, you can effortlessly accumulate miles that fuel your need to travel.
As you embark on your journey to earning points/miles, remember that each purchase brings you one step closer to memorable adventures.
So, whether you’re stocking up on groceries or indulging in a well deserved vacation, let your credit card rewards transform your everyday transactions into extraordinary travel possibilities.
If you want to learn more about credit card points and miles and how to save on travel go to my travel blog at Travelwidstom.
