How to maximize rewards on top travel rewards credit cards

Every purchase you make with a travel rewards credit card earns points, while the card's built-in benefits add up over time. When it's time to book your next trip, those points toward flights, hotels, rental cars and more can significantly lower what you pay for travel.

This guide covers how to get the best value from your card: choosing one that fits your spending, using it well day to day, and reviewing it regularly.

To choose the ideal rewards credit card for you, it helps to have a clear understanding of your own spending.

One way to better understand how your everyday spending adds up is by using a rewards calculator. Another way is through your credit card or banking app, which often groups your spending into a few basic categories:

• Groceries
• Transit, electric vehicle charging and gas
• Dining out and coffee shops
• Recurring bills and subscriptions
• Travel

You'll usually notice one of a few patterns:

• Most of your spending is in one or two categories, often groceries and gas. If that's you, choose a card that gives extra points specifically in those categories.
• No single category is standing out. If that's you, a card with a consistent reward across all categories will usually work out better than one built around one or two bonus categories.
• A good portion of your spending is already on travel itself, including flights, hotels, cruises, car rentals, and other trip costs. If that's you, choose a card that specifically rewards travel purchases on top of everyday spending.

Once you identify your spending profile, you can pick the card that works best for you and maximizes value.

There are two reasonable ways to go about this, and neither one is wrong.

Keep it to one card

Pick a single card that covers your top one or two spending categories, and use it for everything. It's easy to manage, there's only one due date to remember, and it works well for most people. While this approach may not earn you every possible reward, it can help ensure you have a card that suits your needs.

Use a small set of cards, each with its own job

You can give each card a clear purpose:

• One card for your everyday spending: the categories where you spend the most, like groceries and gas
• One card for travel: so you can take advantage of any travel benefits it may include on flights, hotels and trip bookings
• One no-fee card as a backup: for anywhere your main cards aren't accepted, or as a no-fee everyday rewards option if you're not ready to pay an annual fee at all

The key to managing more than one card is having a simple, clear rule for each one. When every card has a defined purpose, knowing which one to reach for allows you to maximize your rewards.

A few things worth reviewing:

• Earning caps: some cards offer an elevated rate up to a set limit, then revert to the base rate. Knowing your cap helps you plan your spending to maximize every point.
• Category definitions: bonus categories like dining or travel can vary by card. Reviewing what qualifies ensures you're always earning at the right rate on the purchases that matter most to you.
• Spending changes: bonus rewards based on where you spend each month instead of fixed categories are featured on some cards. Where you spend can shift within a single year. Think concerts and home improvement projects in the summer, and video games and clothing in the winter.

The benefits that come bundled with a travel card may be worth real money on their own, separate from the points:

• Foreign currency costs: paying in the local currency when shopping abroad or online with your card may help you save on foreign exchange fees. To compare rates and make an informed choice, use a currency converter.
• Complimentary airport lounge visits: certain travel cards may grant access to airport lounges. This allows you to relax, eat, and work in a quiet environment before your flight.
• Luggage fee waivers: some travel cards may include complimentary checked baggage. This waiver may apply to you, as well as travel companions on the same booking.

Here are 5 more questions worth thinking about, whether you're considering going up a credit card tier, or just deciding if the one you have meets your needs:

1. Do I know my top two spending categories, based on a real review of my statements or app?
2. Does my card's bonus rate match how I am spending each month to maximize the rewards I can earn while still not reaching a cap?
3. If I have more than one card, could I say right away which one I'd use for a given purchase?
4. Am I still getting more value from my card's points and benefits than I pay in fees each year?
5. Am I paying separately for anything that may already be included as a card benefit?
6. If you can answer those questions confidently, you have a solid earning strategy in place. If not, it may be time to evaluate whether your current card still meets your needs.

To find an option that fits how you spend today and where you want to go next, explore CIBC travel rewards cards.