How to maximize credit card rewards when shopping online
Quick insights
- Some card issuers have shopping portals where cardmembers can earn rewards at an accelerated rate.
- Knowing which spending categories earn the most points with your credit card can help you maximize rewards when shopping online.
- When choosing a rewards card, you may want to consider the card’s fees, rewards structure and redemption options.
Shopping with a credit card online may provide certain purchase protections. But if you’re shopping with a rewards credit card, it can provide added perks in the form of rewards points, miles or cash back on your purchases.
Read on to learn some ways to maximize the rewards your credit card earns when you’re shopping online.
How do credit card rewards programs work?
Credit card rewards programs are designed to give cardmembers a return on their spending by awarding rewards each time they use their card for purchases. Essentially, when you swipe your card, a percentage of your transaction (or a fixed number of points) is accumulated.
Rewards are typically earned as points, miles or cash back—depending on the card. These options can then be redeemed for various benefits. Some cards also allow rewards to be transferred to designated partners like hotel chains and airlines.
5 Strategies to maximize credit card rewards when shopping online
There are several ways to earn rewards with a credit card. By understanding how your card earns rewards and aligning that to your spending habits, you may be able to maximize earning potential—whether you’re shopping online or in person.
Here are a few strategies to consider:
1. Choose the right rewards card
Maximizing your rewards often starts with choosing the right card for your specific circumstance. If you have more than one rewards card, you may want to compare how they earn rewards and use the card with the higher earning potential on the purchases.
For example, you may want to use a credit card with a higher rate of cash back earnings for online purchases. Some cards also offer benefits like purchase protection, which could be useful for online purchases.
2. Know your card’s spending categories
Certain credit cards have rotating spending categories. This means that during a given month or quarter, cardmembers can earn rewards at an accelerated rate on designated spending categories. For example, the Chase Freedom Flex® card earns 1% cash back on most purchases and 5% cash back on quarterly rotating bonus categories like gas stations and grocery stores, or on quarterly partnerships with major retailers.
Knowing what these categories are and when to use them can help you earn more rewards. Some cards may require you to activate the spending category in order to utilize this rewards feature.
3. Utilize online shopping portals
Your credit card issuer may provide a cardmember shopping portal where you can earn rewards at an accelerated rate. For example, the Chase Shop and Earn portal allows cardmembers to earn bonus Chase Ultimate Rewards® points on eligible purchases through the portal. In this instance, you may find that you earn more rewards when you access the store through the shopping portal.
4. Plan large purchases
If you have a major purchase on the horizon, you may be able to use your card to maximize rewards. The more purchases you make on your card, the more rewards you can potentially earn. So, a larger purchase may give you a significant bump in rewards. For example, if your card earns 3x points on travel, putting $3,000 worth of plane tickets on your card may earn 9,000 rewards points.
You may want to be mindful of your credit limit when putting large purchases on your card. Utilizing too much of your credit at any given time may impact your credit score. It can also be helpful to have a plan to pay off big purchases in a timely manner so you don’t incur interest.
5. Be mindful of sign-up offers
Many new cardmember offers provide the ability to earn bonus rewards. These offers typically allow you earn additional rewards if you reach a certain spending threshold within a set period of time. If you plan to apply for a credit card with a welcome bonus offer, you may want to reference your budget and spending habits to determine whether you can reach the spending amount in time.
How to choose a rewards credit card
Credit cards can have very different rewards earning structures. They can vary from card issuer to issuer and even card to card by the same issuer. If you're trying to assess which rewards card may be best for you, you may want to consider the following:
- Spending habits: Identifying your regular spending categories (e.g., groceries, travel, dining) can help you find a credit card that offers the most rewards in those areas.
- Rewards structures: Rewards cards can earn cash back, points, miles or travel rewards. Determining which structure is best may provide the most value for your typical expenditures and personal preferences.
- Redemption options: How you can spend your rewards may be as important as how you earn them. When looking at rewards cards, you may want to find a card that offers flexibility in how you redeem your rewards.
- Sign-up bonuses and introductory offers: If you’re looking to maximize your rewards, you may want to find a card with a sign-up bonus or introductory offer that aligns with your budget and spending patterns. Some cards may also provide a low introductory APR for a set period.
- Fees: Credit cards with high annual fees may provide more perks and benefits than cards with low fees. You may want to weigh the benefits associated with the card against its annual fee.
In summary
There are many ways to maximize your ability to earn credit card rewards when shopping online. Rewards credit cards may provide the ability to earn rewards at an accelerated rate when shopping and spending in specific categories like travel and dining. Similarly, some cards may have rotating categories that accumulate higher rewards for a period of time.
If your rewards card has an affiliated shopping portal, making purchases through the portal may earn more rewards. Sign-up offers can be another way to earn rewards, and knowing the specifics of the offer can help ensure you’re meeting the spending requirements necessary to earn the rewards.
