Use credit card hacks that work

If you’re going to make the extra effort of maximizing the benefits that your cards can offer, then you want to make sure you’re using credit card hacks that work.

Here are some proven ways to get the most out of your cards.

Never use cash (if you can avoid it)

Follow the ABCs of points and rewards — always be collecting!

The same is true whether you’re using a Visa, Mastercard, or American Express card. To get rewards from your cards, you have to actually use them. So do it whenever possible, and only use cash as a last resort.

Most young adults are already in the habit of paying with plastic. But if you’re in the habit of paying for things with cash, now is the time to get into the habit of paying with your card instead.

The more you use your cards, the more rewards and other perks you can collect. Just make sure that you’re paying off your cards at the end of the month. That way, you won’t end up paying interest.

Ideally, you’d set up auto-pay to avoid late payments and taking a hit to your credit score.

Collect the points that make the most sense for you

Many credit cards default to offering you rewards like travel miles. But there’s no point collecting travel miles or airline miles if you don’t like to travel.

There are lots of different types of cards out there. Sign up for cards that offer points and bonuses that you’ll actually use and get a benefit from. That way, you won’t end up with thousands of points that you can’t use or don’t want.

Use credit cards to pay your monthly expenses

You might be surprised to learn that you can earn points and rewards on your credit card even when paying your bills. That includes things like your internet, phone, or cable bill.

You can even earn rewards on subscriptions to services like Netflix or Amazon Prime!

It’s just one more reason to have all of your expenses flow through credit cards that’ll give you something back in return.

Look out for spending caps

Bonus rewards on cards are often capped at a certain limit per month or year.

If you hit this cap, it's time to switch to another card to continue earning rewards.

Ideally, you’ll want to budget and estimate how much you’ll be able to spend on each credit card during the period. That way, you have time to open another credit card with a separate spending cap if needed.

Take advantage of 0% interest rates

Credit cards have a nasty reputation for charging high interest rates, often 20% or more.

But the truth is that many cards offer low interest or even 0% interest as a part of their promotional offers. This lets you put off paying without taking a hit to your credit score.

If you're carrying credit card debt on another card, you can often transfer the balance to a 0% card to avoid interest.

As long as you’re able to pay off your balance before the promotional period ends, a 0% interest rate is a great way to defer payments without any kind of penalty. It lets you spend your money on other things you need right now.

Just avoid getting caught off guard and left with credit card debt at the end of the promotional period.

Watch for email offers

Many retailers have special rewards for their programs, offering 2x, 5x, or 10x the regular points on particular dates.

Retailers will also often partner with credit card companies to offer limited-time bonus rewards.

These special days might only come up every few months, so it's good to get a heads-up and plan ahead. You may even wait to make large planned purchases to take advantage of these extra rewards.

Pay for healthcare by credit card and submit claims manually

Many insurance plans will instantly cover a portion of your bill when you go to pay for things like glasses, medicine, or dental checkups.

But you can opt to pay the full amount upfront on your credit card and submit the claim manually instead. Then you get fully reimbursed by your insurance company later.

Financially, you end up in the same position once your insurance company has reimbursed you — except you’ll have extra credit card rewards that you otherwise wouldn’t have earned. Talk to your insurance provider if you're not sure how to set everything up.

Hit your minimum spending requirements with gift cards

Credit card offers might require you to spend a set amount before a certain date to claim your rewards.

But it’s not very responsible to go into credit card debt with unnecessary purchases just to hit your spending requirements.

If you want to take advantage of a limited-time card offer but don’t have any big purchases to make, just buy gift cards from a retailer that you know you’ll use in the future.

Stick to major retailers that offer a wide variety of products like Amazon or Walmart, and use gift cards for your everyday spending.

Basically, you want to maximize your rewards while only paying for things you’d normally have bought anyway.

Buy gift cards at grocery stores and gas stations

Rewards for credit card purchases at gas stations and grocery stores are common. And most of these locations carry a wide range of gift cards, ranging from stores to restaurants.

Gift cards will count toward your grocery or gas purchases if bought at these locations.

Use the right card for the job

Keeping multiple cards with a variety of different applications helps you get the most rewards.

Figure out what your biggest spending category is. If you buy a lot of groceries, you’ll want a specific card for that. Essentially, you’ll want to get cards for places you regularly shop.

Kudos makes it easy to pick the best card at every checkout. Plus, Kudos also automates the online checkout process by automatically filling out all the information a merchant site needs to complete a transaction with a single click.

If you want to start getting the most out of your cards, download Kudos today.

Avoid these credit card hacks that don’t work

There’s a lot of bad information out there when it comes to credit card hacks. Sometimes, it’s just rumors that you hear from friends or coworkers. Other times, it’s websites sharing information that’s now outdated.

Either way, here are some credit card hacks you’ll want to avoid because they no longer work.

Buying products for rewards and then getting a refund

Cards will usually reverse out any rewards, including bonuses if you get a refund on the original purchase.

Unfortunately, you can’t cheat the system by going out and buying a $1,000 washing machine on credit to earn points and then returning it.

Canceling your credit card too early

You can lose your points or miles if you don't use them before closing the card.

You might also not be allowed to get a card from that credit card issuer ever again.

Try downgrading your card but keeping it active with your credit card issuer instead of canceling it outright. That way, you’ll keep all of your rewards.

Using your credit cards to buy prepaid cards

It’d be great to use prepaid cards to pay for things like utilities that won't normally reward you for your purchases.

However, many retailers have been instructed to stop accepting credit cards to buy prepaid cards and now only accept cash for them.

Canceling and reopening the same card

Most companies now have fine print stating that if you've earned bonuses in the past couple of years, you won't earn any more by re-opening a new card.

Some companies like American Express even have a lifetime clause stating that you’re only allowed to earn a bonus once.

Kudos makes it easy to get the most out of your cards

The most effective credit card hacks are usually a matter of using the right card for the job.

Kudos is a smart wallet that helps you to pick the best credit card every time you shop. It works with over 3,000 cards, and you can use it on over a million different online merchants.

You can try to keep track of all your cards and pick the best card for each purchase on your own. Or you can let Kudos securely do it for free.

If you want to start getting the most out of your cards, download Kudos today.