Understanding Bonus Rewards Categories on Your Credit Card
Are you making the most out of your credit card? If you're not paying attention to bonus rewards categories, you might be missing out on some serious perks. In this article, we'll break down what these categories are, how they work, and how you can take advantage of them to maximize your rewards.
What are Bonus Rewards Categories?
Simply put, bonus rewards categories are specific spending categories that credit card companies reward with higher points, miles, or cashback rates. These categories can vary depending on the card issuer, but some of the most common ones include:
- Grocery Stores
- Dining and Restaurants
- Gas Stations
- Travel
- Department Stores
Card issuers often change these categories every quarter or every six months, so it's important to keep track of what's currently being offered.
How do Bonus Rewards Categories Work?
Each time you make a purchase in a bonus rewards category, you'll earn more points, miles, or cashback than you would with a regular purchase. For example, if your credit card offers 5% cashback on grocery purchases and you spend $100 at the grocery store, you'll earn $5 back.
It's important to note that most credit cards cap the amount of bonus rewards you can earn per quarter or per year. Once you reach this limit, your rewards rate will usually drop back down to the regular rate.
How to Take Advantage of Bonus Rewards Categories
1. Choose the Right Credit Card
Not all credit cards offer bonus rewards categories, so it's important to choose one that aligns with your spending habits. If you spend a lot on dining out, for example, a credit card that offers bonus rewards for restaurants might be a good choice.
2. Keep Track of Bonus Categories
As previously mentioned, bonus categories can change regularly, so it's important to keep track of what's being offered. Most credit card issuers will send out emails or notifications when categories change, so make sure you're subscribed to these.
3. Plan Your Spending
If you know that a bonus rewards category is coming up, plan your spending accordingly. For example, if you know that next quarter's bonus category is gas stations, consider filling up your tank for the next few months during that period to maximize your rewards.
4. Don't Overspend
While bonus rewards categories can be tempting, it's important not to overspend just to earn more rewards. If you're spending beyond your means, you'll end up with more debt than rewards.
Final Thoughts
Understanding bonus rewards categories can help you make the most out of your credit card and earn rewards for purchases you already make. To take advantage of these perks, make sure you choose the right credit card, keep track of bonus categories, plan your spending, and don't overspend.
Remember, credit cards can be a useful tool for earning rewards and building credit, but it's important to use them responsibly. Always make sure you're able to pay off your balance in full each month to avoid accruing interest and getting into debt.