How to Earn Credit Card Reward Points When Shopping
Using rewards credit cards for spending on gas, groceries and other everyday expenses can help you earn rewards points. Learn to maximize rewards points earned through shopping, use those points to cut costs on everyday expenses, and then apply those savings to other parts of their household budgets.
July 24, 2020 in Benefits
Find a rewards card with accelerated earn rates that match your spending
The more rewards collected, the bigger your redemptions or cash back savings. One way to earn rewards faster is to shop with rewards cards that offer accelerated earn rates on purchases within a category you shop for often. Spending bonuses for some rewards credit cards include double, triple, or even 5 times the regular rewards points when you use your card for spending in certain categories. These categories might include grocery stores, restaurant orders (including take-out or delivery), gas stations, or other types of purchases.
For example, the American Express CobaltTM Card offers Cardmembers 5 Membership Rewards® points for every $1 of eligible food delivery purchases made on the Card in Canada1. Shoppers can earn points from this type of regular monthly expense and Use Points for Purchases charged to the Card2.
Build your budget to get the most out of categories
A monthly household budget can help you make wiser credit card spending decisions and also help you manage your debt. Using a budget worksheet, break down your monthly expenses into categories to make it easier to match expenses and shopping to credit card rewards. This can help you get even more rewards points with your credit card purchases.
Plan big purchases and gifts with rewards redemptions
When you have a big purchase coming up, shop with your rewards program by logging into your online rewards portal and looking through your online rewards catalogues. Your rewards program may include discounts on select items, such as electronics and fashion, that may allow you to redeem with rewards points rather than paying for the item. American Express’ Membership Rewards program offers numerous ways to redeem your points, so checking the program before you buy is a must to get the best shopping value from your points.
Cash back vs. rewards points: Which is worth more to you?
Some credit cards offer cash back instead of rewards. With a budget in hand, you can compare how your spending will earn points versus how it will earn cash back so you can choose the option that works best for you.
For example, the SimplyCash™ Card and the SimplyCash™ Preferred Card from American Express gives Cardmembers the opportunity to earn cash back. Your cash back earnings will be applied to your account as an annual statement credit.
Pay your full balance each month to save the most
Using your cash back card to pay for your monthly bills can earn you cash back, but to be effective, aim to pay back the full balance every month. This prevents paying interest charges and adding debt beyond what you have budgeted for each month’s expenses.
If you don’t pay off your balance in full by the due date shown on your statement, you will be charged interest on all purchases shown on that month’s statement and interest will be applied to your account. When you pay your full balance each month, you’ll not only save on interest payment, you’ll also be taking action to help maintain your credit rating.
If you can’t pay the full balance each monthly on your credit card, make sure to pay at least the minimum monthly payment on time to help maintain a good credit rating.
Take advantage of your rewards program when you shop
Consumers today know there are many cash back and rewards credit cards to choose from. Do your research to choose the card that offers the rewards best suited to your shopping style and budget, looking for cards that feature earn rates that match your planned expenses and reward programs that offer you deals and discounts on merchandise that you find valuable. Your wallet will thank you.
Explore all American Express Cards to find the best option for your financial needs.
1. You can earn Membership Rewards points for eligible consumer purchases at American Express retail merchants as follows: Earn 5 points for every $1 at (i) restaurant, quick service restaurant, coffee shop and drinking establishments in Canada, (ii) stand-alone grocery stores in Canada, (iii) delivery of food and groceries in Canada as a primary business, up to a combined maximum of $30,000 in net purchases posted to your account annually on these categories. Once the maximum is reached, you will no longer earn at 5 points for every $1 regardless of credits, returns and adjustments. Earn 1 point for every $1 thereafter. Calculation resets to zero each year on the Cardmembership anniversary date. Earn 2 points for every $1 at or for (i) stand-alone automobile gasoline stations in Canada, (ii) travel services or travel bookings including air, water, rail and road transport, lodging and tour operator sales, (iii) local commuter transportation in Canada including subway, streetcar, taxi, limousine and ride sharing services. Purchases at merchants where these categories are not their primary business such as general merchandise retailers do not qualify. Merchants are typically assigned codes and categorized based on what they sell. Earn rate of 1 point for every $1 applies when the merchant code is not in an eligible category, using a payment account or service of a third party, a card reader attached to a mobile phone, or online retailer that sells goods of other merchants, or the merchant category is otherwise not identified. Interest charges, annual fees, other fees and cash equivalent transactions are not purchases and do not qualify for Membership Rewards points.
2. You can redeem Membership Rewards points for a statement credit towards an Eligible Purchase charged to an Eligible Card. You must redeem a minimum of 1,000 points per redemption. Redemption rates may vary by Eligible Card. Statement credits on your Card Account should not exceed the aggregate amount of the Eligible Purchase(s) on your Eligible Card. You can register for online services to view your Eligible Purchases and to redeem online. Only Eligible Purchases posted to your Card Account during the last 3 months, up to 150 most recent Eligible Purchases, will be displayed for redemption. If you wish to redeem points towards an Eligible Purchase within the last 12 months that is not displayed online, please contact us at the number listed on the back of your Card. Corporate Cards are not eligible for Use Points for Purchases rewards. Eligible Travel Purchases: 1,000 points=$10 statement credit. All other eligible purchases: 1,000 points=$7 statement credit.
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