3 Signs You're Not Taking Advantage of Your Credit Card Rewards

I rarely take cash out of ATMs. That's because I pay for the bulk of my purchases using credit cards. 

I happen to really appreciate the convenience of being able to tap or swipe my way into a purchase. But my favorite aspect of using credit cards is getting to rack up reward points for items I was going to buy anyway.

That said, I always try to make a point to use my rewards to the fullest. But if these signs apply to you, it could mean you're not taking full advantage of your credit card rewards.

1. You're not being strategic about welcome bonuses

Plenty of credit cards offer welcome bonuses that could put a huge amount of reward points in your pocket. For example, you might score 50,000 miles from a travel rewards card by spending $3,000 within three months of opening your account. But if you're not strategic about chasing welcome bonuses, you could lose out.

Some of the credit cards with more generous welcome offers have a higher spending threshold. If you time your applications right, those spending requirements may be doable, such as if you have a large home repair coming up that you can charge, or if you time the opening of your account to when you're doing your holiday shopping. 

But don't sign up for a new credit card at random because you're enticed by the welcome offer. Instead, compare those offers, and sign up at a time when meeting the spending requirement is easier. 

2. You're letting rewards expire

Many major credit cards don't have rewards that expire. But it's pretty common for store credit card rewards to expire at some point. If you don't use your rewards in time, you're throwing money away in some shape or form.

One solution is to limit yourself to credit cards where you get as much time as you need to use up your rewards. Otherwise, make yourself a rewards calendar -- with reminders -- so you're able to get that benefit in full.

Here's another tip. Say you have $20 in store dollars that expire at the end of the month, but you don't find an item that particularly meets your needs. In that case, buy something random, keep the receipt, and then exchange it for store credit a month or so later. At that point, there may be something else at the store that you want. 

3. You're forgetting about revolving bonus categories

Some credit cards offer revolving bonus reward categories. You may, for example, get 3x points on gas one quarter, 3x points on groceries another quarter, and so forth. 

Pay attention to those revolving categories so you don't miss out on extra cash back in your pocket. Also, you may want to simplify your life by choosing a credit card that offers bonus rewards all year round in the categories you need the most. 

For example, you may decide that it makes sense to find a card that gives you 2x points on gas and supermarket purchases 365 days a year, as opposed to getting 3x points on those purchases during certain times of the year only. 

Credit cards may be convenient, but they can also, in a way, pay you to use them in the form of rewards. So don't deny yourself that benefit. Be strategic in pursuing welcome bonuses, keep tabs on expiring rewards (or avoid them altogether), and do what you can to make it as easy as possible to score the extra cash back you deserve.