For the average American, the single best way to maximize travel rewards is to make sure you’re applying for the best credit cards, and using the right credit cards for your daily spending.
Having the card that best suits your spending patterns can be the difference between earning a single point per dollar on a purchase, and earning five points per dollar on a purchase.
Over the past several years we’ve seen the introduction of so many great new cards that can really help you maximize every dollar you spend. I remember that back in the day I’d typically only earn around one point per dollar spent, while nowadays I’m averaging multiple points per dollar spent.
How I maximize credit card bonus categories
Given how much the credit card landscape has changed, I figure it’s worth sharing the cards that I’m currently using for each major spending category, based on my portfolio of cards. This list is different than the credit cards that I spend the most on in absolute terms, since that one is heavily skewed based on my spending patterns.
Below are the cards I use for various categories, ranked from the most points per dollar to the fewest points per dollar (and the return on spending that I calculate is based on my valuation of points).
Best card for airfare purchases
I use the American Express Platinum Card® (review) for my airfare purchases globally, as the card offers 5x Amex Membership Rewards points on airfare purchased directly from airlines or through Amex Travel (up to $500,000 per calendar year, then 1x points). I value those points at 1.7 cents each, for a return of 8.5%.
On top of that, the Amex Platinum offers excellent travel protection when putting airfare purchases on the card. So I consider this to be one of the most compelling cards for airfare purchases.
Best card for hotel purchases
I primarily use the Chase Sapphire Reserve® (review) for my hotel purchases globally, as the card offers 4x Chase Ultimate Rewards points on direct hotel purchases, with no cap. I value those points at 1.7 cents each, for a return of 6.8%.
While I’d consider that to be one of the best cards for hotel purchases, I do sometimes make exceptions. For example, I use the Hilton Honors American Express Aspire Card (review) for my eligible Hilton purchases (so that I earn 14x Hilton Honors points, which I value at a 7% return). I also sometimes use the World of Hyatt Credit Card (review) for my Hyatt spending. While it earns 4x World of Hyatt points, which I value at 6%, spending on the card offers some extra perks that can make it worthwhile.
Best card for dining purchases
I use the American Express® Gold Card (review) for my dining purchases, as the card offers 4x Amex Membership Rewards points on restaurant purchases worldwide (up to $50,000 per calendar year, then 1x points). I value those points at 1.7 cents each, for a return of 6.8%.
The one exception is that I use the Citi Strata Elite℠ Card (review) for dining purchases on Citi Nights (Friday and Saturday from 6PM until 6AM), so that I earn 6x points on those purchases. So I’d consider those to be among the best cards for dining purchases.
Best card for grocery & supermarket purchases
I also use the American Express® Gold Card (review) for my U.S. supermarket purchases, as the card offers 4x Amex Membership Rewards points on those purchases (up to $25,000 per calendar year, then 1x points). I value those points at 1.7 cents each, for a return of 6.8%. I’d consider that to be among the best cards for supermarket purchases.
Best card for international purchases
Aside from airfare and hotels, my go-to card for purchases abroad is the Atmos Rewards Summit Card (review), given that it offers 3x Alaska Atmos Rewards points per dollar spent, which I value at a 4.5% return, all with no foreign transaction fees.
Having a blanket bonus category of 3x points on foreign purchases is pretty awesome, especially when you consider the other incentives for spending on the card, ranging from Atmos Rewards status points, to earning a 100,000-point Global Companion Award. I’d consider this to be among the best cards for international purchases.
Best card for cellular phone, internet, and cable purchases
I use the Ink Business Preferred® Credit Card (review) for my cell phone purchases, as the card offers 3x Chase Ultimate Rewards points, and has a great cell phone protection plan. Meanwhile I use the no annual fee Ink Business Cash® Credit Card (review) for my internet and cable purchases, as the card offers 5x Chase Ultimate Rewards points. As you can see, I’m forgoing some points on cell phone purchases by using the Ink Business Preferred, but I find it to be worthwhile for the added protection.
Best card for gas station purchases
Despite the fact that I have over two dozen credit cards, I actually don’t have any cards offering bonus points for gas station purchases. So while I’ve covered the best cards for gas station purchases, I don’t actually use any of them in a meaningful way. Therefore I use the same cards that I use to maximize my everyday spending, covered below. Fortunately this isn’t a huge expense for my family, as we don’t drive that much.
Best card for everyday, non-bonused spending
All of this brings me to the cards that I use for everyday, non-bonused spending, which I covered in a recent post, and I’ve also covered the best cards for everyday spending. As a general rule of thumb:
Best card for housing payments
We can quibble as to whether this is a “spending” category, but the reality is that housing costs make up one of the biggest annual expenses for the average person. This is an area where the Bilt Palladium Card (review) comes in handy, as the Bilt Cash earned on the card can be used to redeem for rewards on housing costs, like rent or mortgages. So this generates a lot of points for me, and is another reason that I try to use this card for my everyday spending, so that I rack up Bilt Cash.
Bottom line
It’s incredible how far credit card rewards structures have come, especially for those maximizing bonus categories. When all is said and done, I earn an average of over 3x transferable points per dollar spent, which I value at a return of over 5%.
While I’m not suggesting that everyone should have as many credit cards as I do, I do think there’s a lot of value in strategically getting a few cards that have big bonus categories for the things you spend most on.
How does this compare to the cards you use to maximize your spending?
