MAXIMIZE YOUR CREDIT CARD REWARDS

Your cash back, points or miles may be worth hundreds—or even thousands of dollars each year, if you know the best ways to earn and use them.

- LAURA PETRECCA

EARNING rewards based on your credit card spending can be thrilling. After all, who doesn’t love to get more bang for their buck?

Used strategically, “rewards are free money,” says Ted Rossman, senior industry analyst for Credit Cards.​com and Bankrate. For instance, Rossman earned more than $2,300 in cash back last year by paying for everyday expenses such as food, gas and streaming services for his family of four using three credit cards: American Express Blue Cash Preferred ($95 annual fee, waived the first year), Chase Freedom Flex and Wells Fargo Active Cash. “That’s meaningful,” he says. “Credit card rewards are an inflation buster.”

As the holiday season approaches, this is an ideal time to get some extra cash back in your bank account, as well as to capitalize on credit card perks that can make everything from gift buying to travel more affordable and enjoyable. (Just make sure you pay off your credit card balance in full each month to avoid interest charges.)

Ready to get more out of your credit card rewards? Here’s what to do.

UNDERSTAND YOUR CURRENT CARD’S REWARDS

Familiarize yourself with the rewards that each of your credit cards provide. Rewards typically come in one of three forms: cash back as a percentage of your purchases; points, which can be redeemed for items and services such as merchandise, gift cards, cash and travel; or miles, which are mainly exchangeable for travel-related awards, such as flights or hotel stays.