Credit cards can be powerful tools when used strategically, but many people only scratch the surface when it comes to maximizing their rewards. If you’re already using your card to earn points, miles, or cashback, it’s time to think outside the box. Here are 9 weird ways to use your credit card that can help you maximize your rewards while taking full advantage of the benefits your card offers. Get ready to unlock some surprising, and often overlooked, strategies!
1. Pay for Non-Traditional Expenses (Like Rent or Taxes)
One of the easiest ways to rack up rewards is by paying for everyday expenses. However, what about big-ticket payments, like rent or taxes? Some services allow you to pay your rent, mortgage, or even taxes using a credit card for a small fee. It might seem unusual, but paying for rent with your card allows you to earn points on something you’d already be paying anyway.
Be sure to check if the rewards outweigh the service fee. If your credit card offers 2-3% cashback or points per dollar spent, it could easily make sense to pay rent with your card. For some, this can translate to hundreds of dollars worth of points, depending on your monthly rent.
2. Buy Gift Cards for Future Purchases
Another clever way to maximize your credit card rewards is by purchasing gift cards for stores or services you regularly use. This allows you to earn points now, but still use the gift cards for purchases down the line. Some people go a step further and buy gift cards in bulk to take advantage of bonus promotions. It’s like a double-dip of rewards: first from the purchase of the card and second from the actual items you buy later.
Look out for gift card promotions that offer bonus rewards or limited-time deals that can stack with your regular credit card rewards program.
3. Prepay Subscription Services
Monthly subscription services like Netflix, Spotify, or gym memberships often allow you to prepay for several months or even a year in advance. This is an easy and creative way to maximize your rewards, especially if these subscriptions are services you would be paying for anyway. Prepaying for a year upfront can give you the ability to earn a large number of rewards points in one go.
If your card offers bonus points for large purchases or for recurring payments, this could be a way to take full advantage of both rewards programs. It’s a one-time, strategic payment that could yield months (or years) of rewards.
4. Pay Your Insurance Premiums with Your Credit Card
Many insurance companies allow you to pay premiums for auto, health, or life insurance policies using a credit card. While insurance premiums can be expensive, they can also be a great way to rack up rewards. Paying insurance with your credit card can allow you to earn substantial points or cashback.
Be mindful of the fees involved, though—some insurance companies charge a processing fee for credit card payments. However, if the rewards you’re earning outweigh the fees, it could be worth it. Additionally, using your card to pay for insurance might also provide the added benefit of travel insurance or purchase protection.
5. Use Your Card for Everyday Bills (Utilities, Internet, Phone)
Paying your utility bills, internet, and phone bills with your credit card is another easy way to rack up rewards without changing your regular spending habits. If you’re already paying for these bills each month, you’re essentially getting extra rewards for doing things you’re already doing. Many utility companies, internet providers, and phone companies now accept credit cards as a form of payment.
Some credit cards even offer special bonus categories for these types of payments. For example, if you have a credit card that offers bonus points for gas, groceries, or home improvement purchases, be sure to use it for these everyday expenses.
6. Make Large Purchases (Strategic Timing is Key)
While some people avoid making big purchases on their credit cards to avoid accumulating debt, there’s a strategic way to use your card for large purchases without falling into financial trouble. Timing is everything. Consider timing your large purchases to coincide with your card’s rewards promotions.
For instance, if your credit card offers an elevated rewards rate for large purchases made in specific months (such as a “bonus” category for home improvement during the summer), plan your big-ticket items accordingly. This can earn you extra points or cashback that you wouldn’t get if you made the same purchases at a different time.
7. Use Your Credit Card to Fund a Business (If Applicable)
If you have a small business or side hustle, using your credit card to cover business expenses can be a great way to maximize rewards. Many small business owners use their credit cards to pay for office supplies, travel, and other work-related expenses. Depending on your card, you might get bonus rewards for these types of expenses.
It’s important to keep personal and business expenses separate, but if you’re already using your card for work, why not make the most of it by earning rewards?
8. Participate in Special Credit Card Promotions
Occasionally, credit card issuers run promotions that let you earn extra rewards for specific spending categories. These limited-time offers can include bonus points for online shopping, groceries, or even travel-related purchases. Watch out for seasonal promotions or special spending offers, and consider making purchases for things you know you’ll need in the near future.
Signing up for these promotions can earn you substantial bonus rewards without any extra effort. Keep an eye out for emails or app notifications about special promotions from your card issuer.
9. Buy Travel Gift Cards to Book Future Trips
If you’re a frequent traveler, you know how quickly travel-related expenses can add up. Why not pre-purchase travel gift cards for airlines, hotels, or even car rental services? This is a way to lock in future travel rewards and earn points on purchases for trips you plan to take later.
Whether you’re buying gift cards for an upcoming vacation or for future business trips, you can use these cards as a way to earn rewards in advance. It’s a clever hack to earn bonus points without actually spending the money on travel just yet.
Final Thoughts: Maxing Out Your Credit Card Rewards
Using your credit card strategically can lead to significant rewards. By thinking outside the box and considering some of these unusual methods for earning points, you can maximize the benefits of your card without drastically changing your spending habits. Whether it’s paying bills, buying gift cards, or prepaying for subscriptions, each of these methods offers a smart way to boost your rewards and unlock additional perks.
Remember, credit cards are most beneficial when used wisely, and it’s important to manage your spending to avoid unnecessary interest charges or debt. But when used strategically, you can transform your everyday expenses into valuable rewards that will enhance your lifestyle.
So, the next time you’re about to make a purchase or pay a bill, consider whether one of these weird ways to use a credit card might be the key to maximizing your rewards!