It’s a new year, and most likely the best time to become a new financial you. Saving more money is the most common New Year’s resolution, according to a recent YouGov poll. And the best credit card can help you accomplish your financial goals for the new year — whether it’s planning a dream vacation, paying less on everyday expenses or going debt-free.
Here are four ways to accomplish your financial resolutions for the new year, such as using credit card rewards and perks.
[Read: Best Credit Cards.]
1. Pay Off or Pay Down Credit Card Debt
Whether it’s holiday parties, white elephant presents or trips to see family or friends, there are plenty of reasons why you might have reached for your credit card for more than you had budgeted. But you’re not alone. Americans planned to spend an average of $1,014 on gifts alone during the 2024 holiday season — up from $923 the year before, according to a Gallup survey.
Paying off credit card debt “is probably the single most important thing people can do to get their finances in order,” says Scott Mayerowitz, travel expert and founder of GlobeTrotScott Strategies. “The high interest rates on credit cards means the debt can often pile up faster than you can pay it off.”
One way to accomplish this is to find a card with a 0% annual percentage rate offer on balance transfers and use it. “Then, divide the amount owed by the number of months in the promotional financing offer, and pay that amount each month,” says credit card expert Jason Steele.
That way, Steele says, you’ll pay off your debt before the offer expires and the standard interest rate kicks in.
The best balance transfer credit cards offer a 0% introductory APR of up to 21 months with a balance transfer fee of up to 5%. So, for example, if you transfer a balance of $2,500, you can pay off your debt — fee included — by making monthly payments of $125 for 21 months.
[Read: Best Balance Transfer Cards]
2. Earn New Sign-Up Bonuses
If you rocked the new year without credit card debt, congratulations — it’s time to plan your next successful move. “A good sign-up bonus is a great way to jumpstart your points balance,” says Mayerowitz.
Look for a rewards credit card that aligns with your spending — or with any travel plans you may have for the new year. If you’re still exploring destinations, a card that earns flexible points that can be redeemed in multiple ways will be your best bet. Low-fee examples include the Chase Sapphire Preferred® Card, the Capital One Venture Rewards Credit Card and the Citi Strata Premier? Card.
Travel expert Johnny Jet says he only signs up for credit cards that are offering a large sign-up bonus and recommends taking your time until you find the one that’s right for you.
Your next step should be to shop around, says Mayerowitz. “Some offers might have fewer points but a statement credit that could be even more valuable.”
New card offers may require you to spend a certain amount in a specific time window to earn the bonus. For example, The Platinum Card® from American Express currently offers 80,000 membership rewards points after you spend $8,000 in eligible purchases within the first six months. But make sure to stack up the spending requirement against your expenses to confirm it fits into your budget. Incurring debt just to earn a welcome bonus may cancel out its value.
Also, time your strategy to ensure your bonus points post to your account by the time you need them. For example, this may make it easier to find award flights and hotel stays if you book your trip at least three months in advance. So, if you’re planning to travel in July, make sure to earn the bonus points by April.
[Read: Best Rewards Credit Cards.]
3. Earn More Cash Back or Points
“The hardest part of picking a new card is finding the one that’s best for you,” says Mayerowitz. Consider the following when you’re on the hunt for a new card:
— Your lifestyle and spending habits. Review your expenses from the last year and identify the categories where you spent the most — then look for a card that rewards them. For example, if grocery purchases are a big part of your budget, a card like the American Express® Gold Card can help you score extra points at the supermarket.
— Your financial or travel needs. Have a clear idea of how you want to use your rewards. If a dream trip is on your mind, sign up for a travel credit card that matches your plans. If you want to stretch your paycheck every month, a cash back credit card can help you pay a little less on everyday expenses.
[Read: Best Cash Back Credit Cards.]
“It can help to have multiple cards that earn bonuses on specific purchases that you make frequently,” Steele says. But consider whether you want to go all-in on the rewards game or stick with one card for everything.
“Most people aren’t willing to put in the time and energy to really maximize loyalty programs,” Mayerowitz says. If that sounds familiar, he advises to “go for simplicity.”
Cash back is one of the easiest types of rewards to earn and redeem. Mayerowitz suggests looking for a card that offers at least 2% back on all purchases. “If you aren’t loyal to certain brands, get a cash back card,” says Jet.
[Read: Best Travel Rewards Credit Cards.]
4. Spend Less on Fees or Take Advantage of Benefits
Premium cards that come loaded with perks usually charge hefty annual fees, so the key to saving money is to “be mindful about the annual fee and ensure the card is worthwhile,” Mayerowitz says. “If you aren’t spending $15,000 or more a year, don’t even bother with a card that has an annual fee.”
When shopping for your next card, take a close look at the benefits and see if they can help you cover expenses or services you’re already paying for. The right card can help offset them — and any rewards you earn may just be the icing on the cake.
Here are a few examples of credit card benefits that can help you save money:
— Free checked bags. Checking a bag on a round trip can cost $70 to $80. Cards like the Delta SkyMiles® Gold American Express Card or the United? Explorer Card can help save on checking bags and covering the annual fee.
— Streaming services. A card like the Blue Cash Preferred® Card from American Express gives you 6% cash back on streaming subscriptions, plus a $7 monthly statement credit for a Disney Plus Bundle.
— Cellphone protection. This is arguably one of the best credit card perks as it can save you hundreds of dollars in repair or replacement costs if your mobile device gets lost, broken or stolen. Many cards that offer this insurance — from the no-annual-fee Chase Freedom Flex® to a premium card like The Platinum Card® from American Express — provide benefits of up to $800 per claim. All you need to do is consistently pay your monthly phone bill with that particular card.
The right credit card can help you accomplish your financial New Year’s resolutions — but make sure to spend time reviewing rewards, benefits and fees before applying. “Never get a card with an annual fee that’s not worth the benefits offered,” says Steele.
And even if the perks are enticing, don’t get a rewards credit card “unless you can pay it off in full every month,” says Jet.
More from U.S. News
Best Credit Cards for Food Delivery
Dear Clever Credit: I’m in College. What Should My Next Credit Card Be?
With Its Higher Annual Fee, Is the American Express Gold Card Still Worth It?
New Year, New Credit Card Strategy: 4 Ways to Up Your Credit Card Game in 2025 originally appeared on usnews.com
