Our guide to maximizing rewards on retail purchases
Quick insights
- Many credit cards allow you to earn rewards on everyday purchases and retail purchases.
- If you have a credit card with rotating bonus categories, you may want to strategically use them to earn rewards points faster.
- Some credit card issuers have shopping portals that allow you to earn bonus rewards for making retail purchases through the portal.
The more you understand your credit card’s rewards structure, the more you can earn rewards. If you put retail purchases on a credit card, there are a few ways you may be able to maximize your rewards. Let’s look at a few.
Using rewards credit cards to earn points
Credit card points are a type of reward that you earn through your credit card's rewards program. Points are typically earned by making purchases with your credit card. The number of points you earn can vary depending on the specific terms of your card's rewards program. Credit card points may then be redeemed for a variety of rewards, such as travel, gift cards or cash back, depending on the options offered by your credit card issuer.
When choosing a credit card, consider finding one that has a points structure that rewards you based on your current spending habits. For example, if you travel frequently, a card that provides the most rewards points for travel may help you earn rewards faster.
Using a card for everyday spending
One way to maximize how you earn rewards points is to find and use a card that rewards you for day-to-day expenses. When you have credit card benefits that align with your daily spending habits, you may find it makes earning rewards easier.
Cash back rewards cards
If you use your card to make a variety of everyday purchases, you might want to consider the benefits of a cash back rewards card. These cards typically offer a percentage of cash back rewards on most purchases. For example, with the Chase Freedom Unlimited® card, you can earn 1.5% cash back on most purchases.
Using quarterly bonus categories
Some credit cards offer a standard rewards rate on some spending categories and a higher rate on bonus categories. These categories often rotate quarterly and have the ability to earn higher rewards during that period. For example, with the Chase Freedom Flex® card, buying gas might typically provide a 1% rewards rate. If it’s a bonus category, gas store purchases could earn 5% rewards.
Common bonus categories include:
- Gas stations
- Grocery stores
- Fitness club and gyms
- Hotels
- Restaurants
- Movie theaters
Bonus categories are sometimes activated automatically, but many card issuers require cardmembers to manually do it. You can typically activate bonus categories through your online account or a mobile app.
Store credit card vs. rewards credit card
Store credit cards can also earn rewards and points for retail purchases, but store cards may have some limitations on where they can be used. They are typically limited to use at a specific retailer's physical and online store. By contrast, conventional credit cards are accepted almost everywhere.
Although it's often a benefit of conventional credit cards, store cards may have rewards programs too. In this way, both cards may reward spending at specific retailers with points systems. Store cards, however, may provide discounts and offers at the retailer that are available only to those with the store card.
Leveraging shopping portals for maximizing rewards
Purchasing merchandise with your credit card through the card issuer’s shopping portal can earn more points than purchasing directly with the merchant. You may also find discounts or savings available only through the shopping portal.
Shop Through Chase is an online shopping portal offered by Chase that allows cardmembers to earn extra rewards when shopping online. It connects cardmembers to hundreds of online retailers, offering them the opportunity to earn bonus points or retailer discounts and offers on their purchases.
In summary
There are several ways to maximize rewards points on retail purchases with your credit card. Many credit cards allow you to earn rewards on everyday purchases. If you have a credit card with rotating bonus categories, use it to earn rewards points faster. These bonus categories can sometimes offer up to 5x points on certain spending categories. If your credit card issuer has a shopping portal, you may find additional points and reward opportunities by shopping and using your credit card to make purchases there.
