Double-dipping can get you into trouble at the dinner table, but it’s a savvy credit card rewards strategy. When you double-dip with your credit card, you’ll maximize the rewards earned on every purchase by tapping into as many rewards programs as possible — such as your regular credit card rewards, third-party rewards sites and loyalty programs.
This strategy requires some planning, but doubling — or even tripling — your rewards earnings can translate to extra hotel nights, free airfare and more rewards dollars in your pocket.
[Read: Best Credit Cards.]
What Is Credit Card Double-Dipping?
Credit card cash back or points programs aren’t the only way to earn rewards on your purchases. For example, when you book a flight, you can earn points on your credit card on top of miles through the airline’s loyalty program.
The basic idea behind double-dipping is to link your credit card purchases to as many rewards programs as possible so you can stack your cash back or points earnings. That way, in addition to the standard 1% to 3% cash back you’d earn in credit card rewards, your earnings can increase to 4%, 6% or even 10%.
It may not be realistic to apply that level of forethought to every transaction, but spending the time to strategize can be worthwhile for big-ticket purchases. A $2,000 television, for example, could earn $40 cash back if charged to a 2% flat-rate cash back card. But if you’re able to link a few extra rewards programs to the purchase, you may be able to earn 8% cash back, for example. That’s an extra $120 in savings.
While gamifying your credit card rewards strategy can feel exciting, remember not to get carried away. “If a rewards card causes you to make extra purchases because you’re trying to rack up points, it can quickly end up costing you more than you earn,” says Crystal McKeon, certified financial planner and chief compliance officer at TSA Wealth Management, a retirement planning firm. Because credit card interest rates often range from 15% to 29%, it can be difficult to offset interest charges with credit card rewards. For that reason, paying your balance in full each month should always be a priority.
How to Double Up on Your Credit Card Rewards
Shopping Portals
Some credit card issuers have online marketplaces where cardholders can shop for products from popular retailers. Capital One Shopping, for example, features brands like Adidas, CVS, Target, Lowe’s, Macy’s and Best Buy. These portals feature exclusive deals and cash back offers, such as 4% cash back storewide or 8% cash back on a specific item. Coupon codes are also common. Applying these offers on top of your ongoing rewards rate can be a great way to earn more points, miles or cash back.
If you have a big purchase in mind, check whether your credit card issuer has a shopping portal. If so, see whether you can get extra cash back by making your purchase through the portal.
You can access these shopping portals through your issuer’s mobile app or online. The issuer will require you to log in using your credit card account credentials before completing your purchase.
Popular credit card issuers with shopping portals include:
— Barclays
— Chase
— Citi
[Read: Best Cash Back Credit Cards.]
Card-Linked Offers
Similar to shopping portals, card-linked offers are often limited-time offers that issuers extend to cardholders. For example, you might see 6% cash back at Lululemon. That cash back would apply on top of any cash back you would normally earn on that purchase. So, for example, if you had a credit card that earns a flat 2% cash back rate, you would earn 8% cash back by double-dipping.
Unlike a shopping portal, card-linked offers usually apply storewide, rather than to specific items.
Typically, you can find these offers in your issuer’s mobile app. They’re often curated for you based on your spending habits. And you may be able to save, or “clip,” the cash back offer and apply it to future purchases. If that’s the case, it may be a good idea to check your offers regularly and clip any cash back coupons you think you may use.
Popular issuers that have card-linked offers include:
— Capital One
— Chase
— Citi
Cash Back Sites and Apps
Looking outside of your credit card issuer can be a key strategy for maximizing your rewards earnings. Third-party rewards sites like Rakuten and ibotta offer cash back for shopping with their partner retailers.
If you add Rakuten’s extension to your internet browser, then you’ll be notified when you can apply cash back offers to eligible purchases, so you won’t need to go on a search for offers.
If you’d rather shop Rakuten’s marketplace, it’ll work similarly to credit card shopping portals. When you click on a deal, you’ll be brought to the partner’s website, where you can make purchases directly from the retailer. Rakuten keeps track of your purchases, so you’ll automatically be awarded cash back based on the rewards you’ve activated in your account. Just be sure to start your shopping session on Rakuten and navigate to the partner site through its marketplace. Otherwise, you may not get credit for your purchases.
Similar to Rakuten, but geared toward grocery stores, is ibotta. Users digitally clip coupons and rebates before shopping, then will submit a photo of their receipt. Afterward, they’ll get a bank account deposit or gift card with their earnings.
Both of these services also have mobile apps, which can streamline the experience.
Airline and Hotel Loyalty Programs
If you’re not signed up for an airline or hotel loyalty program, you may be leaving money on the table. For example, members of American Airlines’ AAdvantage loyalty program earn 5 miles per dollar on flight tickets. So, for example, a $300 flight would earn 1,500 AAdvantage points.
Since AAdvantage award flights start at 7,500 miles, every $1,500 you spend on flights could earn you enough miles for a free one-way award flight. And if you’re using a travel credit card to purchase those flights, even better. You’ll stack the airline loyalty points on top of your regular credit card rewards.
Some airlines even have browser extensions that award shoppers with additional loyalty points. “I use the American Airlines AAdvantage shopping browser extension,” says Nathan Sebesta, certified financial planner and owner of Access Wealth Strategies. “I love it because it helps me earn extra bonus miles on purchases I was already planning to make — especially when paired with my AAdvantage credit card. It’s a simple way to stack rewards without changing my spending habits.”
Restaurant Rewards Programs
In a similar vein, those who are loyalty members with an airline or hotel program should consider enrolling in any affiliated dining rewards programs. These programs offer boosted rewards rates at restaurants, bars and clubs.
Hilton Honors Dining, for example, allows members to search by ZIP code and earn Hilton Honors points on purchases at partner establishments. All you need to do is link a card and activate the offers. You’ll earn two bonus points per dollar, but if participants elect to receive marketing emails, the earnings rate will increase to five bonus points per dollar. The rate kicks up to a maximum of eight bonus points per dollar once you complete 11 qualified transactions in a calendar year.
Again, those points would be on top of any rewards your credit card already earns.
In addition to Hilton, airline and hotel brands with dining rewards programs include:
— Alaska Airlines
— IHG Hotels & Resorts
Retail Rewards Programs
Finally, ensure you’re a loyalty member with your favorite retailers and restaurants. For example, getting every 10th drink free at your favorite coffee shop or receiving text messages for flash sales can stack nicely with cash back and keep your savings high while you support your go-to brands.
[Read: Best Rewards Credit Cards.]
Double- and Triple-Dipping Credit Card Rewards Example
Tracking and stacking so many rewards programs can feel dizzying, so here’s an example of how you might go about double- or triple-dipping your rewards.
Say I’m planning a big family dinner. My Chase Freedom Unlimited® Credit Card earns 3% cash back on dining. I can filter my Chase offers to show only restaurants, and I see that a steakhouse near me will earn an extra 5%. By activating this deal, that’s an effective 8% cash back — $40 back on a $500 bill.
And if I wanted to triple-dip, I could check to see if the steakhouse participates in Hilton Honors Dining, through which I could earn up to an additional eight points per dollar.
Though it takes time to research and activate deals, double- or triple-dipping credit card rewards can be a great way to get more bang for your buck. To make it worthwhile, try this strategy with larger purchases, where the boosted cash back rates could translate to higher-dollar bonuses.
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Double-Dip and Get Twice as Many Rewards With the Swipe of Just One Card originally appeared on usnews.com
