Rewards expert who writes the “Cashing In” reader Q&A column for CreditCards.com
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The end of the year can be a busy and memorable time, filled
with holidays, shopping and celebrations with family. But if you find yourself
with some down time beforehand, it is also an appropriate time to take
stock of your credit card rewards and make helpful changes you didn’t get
to during the hustle and bustle of the rest of the year.
Here is a checklist of five actions you might take to get your
rewards house in order before the new year starts:
1. Review automatic charges.
You probably have
bills set up to charge a certain card every month, such as a gym
membership, Spotify or Netflix. Are those charges billing to the right credit
card? Few such charges probably qualify for category bonuses, but make sure you are receiving the rewards you want from those charges.
The same goes for card information stored with online
retailers. For instance, if you use Amazon a lot and have received an American
Express card in the past year, have you linked the American Express to your
Amazon account? If so, you can pay for items using American Express reward
2. Make year-end
A lot of people donate to charity at the end of
December, so that those contributions can be deducted on tax forms that are due
the following April. Any donations placed on a rewards card earn rewards, so
make sure you are receiving rewards by using the right card.
Charitable contributions are also a smart way to meet sign-up bonus spending
requirements on a new card.
3. Review spending and
Some card issuers send end-of-the-year statements allowing you to see how much you charged in each merchant category. You can use
that statement as a report card to judge how well you did earning category
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For instance, if you have one card that earns bonus rewards at
restaurants and one that doesn’t, see how many times you used the one that
doesn’t at restaurants. In those instances, you left reward points on the
You can also use the end of the year as a time to check and
evaluate your reward balances connected to your credit cards. If you have
airline miles, are you close to a reward threshold for a free flight? If you
have a cash back card, is it time to request a statement credit (if your card
doesn’t do that automatically)? Are any points about to expire?
answers to those questions can help you plan how to allocate credit card
4. Use any remaining
As my colleague Summer Hull wrote
earlier this month, you’ll want to use any outstanding travel credits
before they expire. Those credits are usually only on high-end rewards cards with
annual fees of $450 or more, such as the Chase Sapphire Reserve, Citi Prestige and
American Express Platinum.
If you have an American Express Platinum card,
you’ll also want to think about which airline you want to designate to be
eligible for reimbursements: You can make that selection in January.
5. Plan for new cards,
purge old cards.
A lot of people make resolutions for the new year, and it
is not too early to think about your reward card strategies for 2018. Take the
time to explore new cards, and think about what kind of sign-up bonus might be
best given your goals. Evaluate your cards when annual fees are coming due and consider canceling cards you seldom use.
Accomplishing these objectives won’t take long. They’ll help
make sure that you get the most out of your reward cards in the year ahead.
See related: How to stack cards to save big, 7 ways to get the most from rewards credit cards
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