Credit card rewards help our family save money on groceries, gas and other necessities. We also use rewards for airline tickets, hotel rooms and airport lounge access.<\/p>\n
We\u2019re in good company. Most Americans have at least one rewards card, and nearly half of rewards cardholders are using their perks to help offset rising inflation, according to a 2022 Wells Fargo But a recent review of our cards revealed that some are no longer worth their annual fees or have been eclipsed by better offerings.<\/p>\n Credit card fees, reward rates and benefits change all the time. So do the ways we spend our money, which means a card that used to be a good fit may no longer work as well. Given all that, it\u2019s not surprising that fewer than one-third of credit card users feel that they\u2019re making the most of their rewards cards, according to J.D. Power\u2019s 2022 U.S. Credit Card Satisfaction Study.<\/p>\n An annual review of our credit cards helps ensure we\u2019re getting properly rewarded.<\/p>\n Plus<\/strong>: Apple Card savings account has an attractive 4.15% interest rate, but beware of these pitfalls before signing<\/p>\n First, a few caveats.\u00a0Rewards credit cards\u00a0make sense for our family because we pay balances in full every month. If we didn\u2019t, the cost of interest would more than offset the value of any rewards. Also, you don\u2019t need to be as obsessed with rewards as we are to benefit. A simple cash-back rewards card can save you money without a lot of hassle.<\/p>\n Once we had a few cards, though, I found it helpful to start using a spreadsheet to keep track of each card\u2019s annual fee, renewal date, \u201cearn rate\u201d (such as 6% cash back on groceries, or 3 points per dollar spent on flights) and other relevant benefits. Every year or so, I update this spreadsheet with the value of rewards we\u2019ve earned and redeemed as well as current information about annual fees and benefits.<\/p>\n If I\u2019ve used points to book a flight or cashed in a free hotel night certificate, for example, I\u2019ll include the value of the travel. With cash back cards, I type in the dollar value redeemed during the year. Some cards provide a helpful year-end summary; otherwise, I can check rewards activity month by month by logging into the account online.<\/p>\n Related<\/strong>: Learn these 5 myths about credit card rewards to reap more benefits<\/p>\n Investigating all of a card\u2019s perks may require logging into your account with a web browser rather than a mobile app, since account information is often more detailed using a browser. There\u2019s typically a tab or link that leads you to a rewards dashboard that summarizes your earn rate and highlights any additional benefits, such as complimentary food delivery subscriptions or credits that cover airline fees or offset the cost of streaming services.<\/p>\n I add the dollar totals for benefits I\u2019ve used to the spreadsheet and make a note on my calendar to use up any remaining credits before the perk resets. (Many credits must be used within a calendar year, but some reset on the card\u2019s anniversary date.)<\/p>\n I also note other benefits that don\u2019t necessarily have a price tag but still have significant value, such as travel insurance, elite status perks at a hotel chain or airline, or extended warranties on purchases. If I\u2019m considering closing an account that has, for example, primary rental car insurance \u2014 the kind where you don\u2019t have to alert your auto insurer if you\u2019re in an accident \u2014 I\u2019ll be sure to replace it with a card that has similar benefits.<\/p>\n Also see: <\/strong>Obsessing on points and miles? Stop saving them and start using them.<\/p>\n By this point I can see which cards are more than offsetting their annual fees and which aren\u2019t. For example, one of our premium cards jacked up its annual fee, again, and I discovered we weren\u2019t using enough of its benefits to justify the cost.<\/p>\n Closing accounts can hurt your credit scores, unfortunately. That shouldn\u2019t keep you from ditching a card that\u2019s not serving you, but consider asking for a \u201cproduct change\u201d to one of the issuer\u2019s other cards that might be a better fit. This usually avoids a hit to your credit scores. Some product changes allow you to keep your rewards, but many don\u2019t, so have a plan for using up any points or miles before you switch.<\/p>\n Then again, product changes generally don\u2019t allow you to get one of the biggest rewards card perks: sign-up bonuses. To get these bonuses, you generally need to apply for a new account. In return, you can get a big wad of points if you spend a certain amount within a certain period, say 80,000 points if you spend $4,000 within three months of the account\u2019s opening. Often this is the best way to add the most rewards in the shortest period, but applications can\u00a0temporarily ding credit scores, so I generally limit applications to once or twice a year. I use credit card comparison tools and read reviews of new card offerings to see what\u2019s available.<\/p>\n Once I decide whether to close a card or ask for a product change, I put a note on my calendar to contact the issuer two weeks before the annual fee renews.<\/p>\n The last thing I do before closing my laptop is make a date with myself a year from now to do this review all over again. Change is constant in the credit card world, and I want to make sure we continue to get the most out of our plastic.<\/p>\n
\n WFC,
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\n survey.<\/p>\nCreate a rewards tracker<\/strong><\/h2>\n
Investigate card benefits<\/strong><\/h2>\n
Decide each card\u2019s fate<\/strong><\/h2>\n