One of the biggest perks of credit cards is the reward potential. I mean, who doesn’t like discounted (or free!) things courtesy of a piece of plastic?
Rewards can rack up, and whether you are a seasoned or a newbie cardholder, it’s important to keep up with your rewards.
It can be a bit overwhelming, so here are the best ways to track (and maximize) your credit card rewards.
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- Take inventory of your cards and track annual fees, dates, interest rates, rewards rates, and benefits.
- Keep up with any rotating categories you have to activate and note which cards are best for certain purchases.
- Use a spreadsheet or rewards app to help you track rewards and spend categories.
. . .
Make a List of All Your Cards
First, take inventory of all your cards.
Keeping a list of your cards and their key features will prevent you from missing out on rewards (and missing payments). This also ensures you are using the best card for your purchases.
A simple spreadsheet is a great way to keep track. On your spreadsheet, include:
- Each card’s name and issuer
- The date you opened the card
- The annual fee and when it will be charged next
- Interest rate/annual percentage rate (APR)
- Rewards rates (cashback percentages, for example)
- Payment due date
- Balances (if you don’t pay it off at the end of the cycle)
- Key benefits like travel credits, insurance, extended warranties, or purchase protections
- Any other information about the rewards program, including the required spending minimum for sign-up bonuses and the card’s bonus categories
Remember to regularly update your list. I’d say shoot for once a month but if you find yourself short on time, once a quarter should suffice.
Track Which Card Is Best for Which Purposes
Rewards credit cards have point systems, where you earn points depending on different purchasing categories. Certain cards are more suited for some purchases than others — such as earning a higher rate on gas or restaurants.
If you are trying to get a sign-up bonus, put all your purchases on your new card over the qualifying period. Beyond that, you’ll need to strategize which card to use for different purchases.
Create a cheat sheet to keep track. Whether it's a spreadsheet or a handwritten note to keep in your wallet for physical purchases, writing down the categories is helpful.
Also, make a point to regularly review your statements to see if you are maximizing your rewards.
COMPARE: Best Rewards Credit Cards
Monitor Rotating Spending Categories
Some cards will offer higher rewards in specific spending categories that change every quarter.
These rotating categories often require activation by you, so keeping track of them is important. You don’t want to miss out on bonus points or rewards!
You have two options for monitoring your categories:
- Set reminders/alerts: Some issuers will send you an email or push notification when it's time to activate categories. These are alerts you have to configure or agree to, though.
- Consider manual tracking: When in doubt, make a reminder on your calendar at the beginning of each quarter.
READ MORE: How To Get the Most Out of Credit Card Points
Use Technology to Your Advantage
There are rewards apps out there whose sole purpose is to make it easier to track credit card rewards.
Apps like AwardWallet, Sift, MaxRewards, and CardPointers are all great apps for this purpose. They can help you track rotating spending categories, while also providing a convenient way to track what you’ve earned so far.
Apps can also help you know which card to use for different purchases based on that card’s current reward structure.
Additional tip: You can set spending alerts and notifications on your credit card’s direct app to help you achieve some tracking goals, too.
Make Sure You Meet the Sign-Up Bonus
Sign-up bonuses are among the biggest pros of opening a new credit card. However, to meet these bonuses, you must spend a certain dollar amount within a set time frame.
Plan your spending to help with this. Evaluate your upcoming expenses to see if they align with the spending requirements to receive the bonus.
If you time large planned purchases, like home repairs or your annual vacation, it will be easier to meet the required spending without majorly altering your budget.
You can use a budgeting app or even your credit card app to help monitor your spending toward your sign-up bonuses.
COMPARE: Best Credit Card Sign-Up Bonuses
FAQs
How do I find out what my rewards are?
To find your credit card rewards balance, check your card statement. You can also access your points/rewards profile through your issuer's digital banking.
Can you lose credit card rewards?
Most reward points never expire if your credit card account remains active. But some hotel and airline rewards will expire after a year or more, so check your card’s fine print.
You can also lose your rewards if you miss too many payments or return a purchase that had earned you rewards.
Are credit card rewards taxable?
Credit card rewards aren’t considered income and therefore are not taxable. This is because tax law treats them as rebates or discounts, instead of income.
TL;DR: Tracking Credit Card Rewards
Credit cards can provide hundreds, if not thousands, of dollars of value in rewards and cashback — when used correctly. If you put time and effort into tracking, you’ll benefit majorly from your credit cards.
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