5 Ways to Capitalize on Your Credit Cards

This Financial Planning Month, plan to use your credit cards to your advantage. No matter how much you try to avoid them, we all use credit cards sometimes. Having money set aside for unplanned expenses is one way to avoid overspending on your card. Here are some credit card tips and tricks from Bank of America’s Better Money Habits so when you do use your card, you can earn cash back and receive rewards on some of your transactions.

  1. Only open credit cards if necessary.

While it’s great to earn rewards, points and cash back on a credit card, don’t open unnecessary accounts. Your credit score is affected each time you apply for a new line of credit because the lender pulls your credit report with a “hard inquiry.” The more credit cards you use, the more bills you’ll have to monitor. Practice good savings habits so you won’t have to rely on credit cards.

  1. Choose a card with cash back rewards.

Did you know you can receive cash back on some of your purchases? If you’re someone who uses your credit card routinely to cover day to day expenses like lunch at work, gas for your car or utility bills, you might want to enroll in a cash back program so you can earn money when you swipe your card.

Contact your current credit card lender to see if they offer cash back rewards. You may be able to upgrade from a basic card to one that offers benefits with the same provider. If you’re not able to upgrade your card, consider limiting your spending on this particular card since there’s no reward for using it.

When you begin receiving cash back, try not to overspend in hopes of earning money in return. You’ll still have to pay your credit card bill with added interest, so a few dollars back is not worth an oversized credit card statement at the end of your billing cycle.

  1. Are you a budding world traveler? Get a travel rewards card.

With the right rewards card, you can earn enough points to cover your next flight or hotel stay. Your travel rewards card might offer flight and hotel upgrades, roadside assistance, and protections in case you lose your luggage, experience travel delays or have a medical emergency on the road.

Be sure to compare your options before signing up for a card. You can choose a general travel rewards card that accrues points on regular, non-travel related card usage; or you can choose an airline or hotel specific card that only earns points when you book travel specifically through them.

If you choose the latter, be sure to calculate the amount you have to spend before actually earning enough points for a trip. If it’s a large amount, you’ll be better off with a general travel rewards card.  

  1. Consider earning points when you shop at your favorite store.

If you’re obsessed with shopping at a particular store or website, consider opening a credit card with them. Some retail stores offer discounts as soon as you open your account. Others incentivize your shopping by providing rewards as you spend.

Having a credit card at your favorite store is a great way to earn rewards from your usual spending, but don’t overspend just because you have a card. Be sure to double check the terms and conditions like the interest rate before signing up. >> Learn five ways you can save while you shop.

  1. Use your lowest interest credit card for large purchases.

Planning for a large expense can be stressful, but if you've been saving money you can use some of your savings instead of relying on your credit card.

If you do have to use your card, be sure to use the one with the lowest interest rate for any of your large credit card purchases. This way, you won’t be charged an arm and a leg in interest when it’s time to pay back on your card. >> Learn about how interest rates affect you.


Let Military Saves help you save money so you can feel confident about your finances. It all starts when you make a commitment to yourself to save. Take the first step today and take the Military Saves pledge to save money, reduce debt, and build wealth over time. And it doesn't stop there. Military Saves will keep you motivated with information, advice, tips and text message reminders to help you reach your goal. Think of us as your own personal support system.

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When you save money for unexpected expenses, you don't have to depend on credit cards. For those instances when you have to use your card, here's how to use it to your advantage. v/ @MilitarySaves http://bit.ly/2OWR5kw 

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