If you’re up for celebrating the Fourth of July this year, you should at least get a little bang for your buck. By using your credit card for specific purchases, you can end up earning extra rewards on purchases you were going to make anyway. Like that pound of potato salad so Aunt Carol doesn’t bring hers that’s covered in (shudder) raisins.
Earn Rewards While Preparing for the Barbecue
Last year, Americans spent $9.4 billion on food items for Independence Day, according to the National Retail Federation. This should come as no surprise since almost 70% of Americans chose to celebrate the holiday with a cookout or barbecue.
So if your plans this year involve a grill, some brewskies and a whole lot of fireworks (does anyone know the merchant category codes for those fireworks stands by the highway?), you should use the opportunity to earn some rewards while at the grocery store.
Cash Back
There are a few choice credit cards that will allow you to earn rewards while grocery shopping, but probably one of the best is the Blue Cash Preferred® Card from American Express. This is because it offers 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1% thereafter). Just remember it comes with a $0 intro annual fee for the first year, then $95. See Rates & Fees
Another good option is the Capital One Savor Cash Rewards Credit Card. Now, this one earns a little less at grocery stores — 3% cash back — but there’s no spending cap or annual fee to deal with. But superstores like Walmart and Target don’t count as grocery stores, so this might not be the best card if you primarily shop at those stores. See Rates & Fees
Not into figuring out what counts as a grocery store and what doesn’t? Then a flat-rate cash back card could be for you instead. The Wells Fargo Active Cash® Card is a solid choice, offering 2% cash back on every purchase, with no spending cap or annual fee. See Rates & Fees
Rotating Categories
If you don’t mind activating different categories every quarter, you should check out rotating category credit cards. These cards offer additional rewards on certain categories that change every few months. So if you miss the activation window, you lose out on those extra rewards.
One popular example is the Discover it® Cash Back credit card. Until June 30, cardholders can earn 5% cash back at grocery stores and wholesale clubs (on up to $1,500 in purchases).
Travel Rewards
If you’re more interested in earning points for travel, the American Express® Gold Card is a personal favorite of mine for food purchases. The card earns four points per dollar spent at restaurants (on up to $50,000 per calendar year, then one point thereafter) and U.S. supermarkets (on up to $25,000 per calendar year, then one point thereafter). Just know that it comes with a hefty annual fee of $325. See Rates & Fees
The Citi Strata Premier? Card is another option and comes with a lower annual fee of $95. It offers three points per dollar spent at restaurants and supermarkets. See Rates & Fees
[Read: Best Cash Back Credit Cards.]
Check Card Offers
Too many consumers forget they can add additional card offers onto their credit cards. Just pop into your app, and you should be able to see an icon somewhere that says something along the lines of “offers.”
Once there, you can add these bonus offers to your card, possibly earning more rewards than you would have originally. For example, just from popping into my own Capital One and American Express accounts, I can see offers for Walmart, The Home Depot, Lowe’s, Best Buy, Crocs and more.
So if you want to stand outside in your new Crocs while you cook hamburgers on your new grill, you might want to check your card offers first.
Use Rewards for Travel
If you’re traveling this summer around Independence Day, use your travel rewards to make the trip a little more budget-friendly. In a late May survey, U.S. News found that 45% of Americans plan to pay for their summer trips with savings or cash, while only 12% plan on using their rewards/points.
What’s more, when asked what credit card they planned to use for their travel, the most common response was a cash back credit card (36%). Now, cash back credit cards are great. The rewards are simple and to the point. But if you have a travel credit card or have been thinking about getting one, they offer a wealth of benefits and perks.
[Read: Best Travel Rewards Credit Cards.]
Also, if you use a particular airline over another, check whether the travel card you’re interested in has it as a travel partner. This allows you to transfer miles or points to a frequent flyer program, meaning you could potentially earn more rewards. Of the roughly 70% of Americans who know about transfer partners, only 56% have actually used this feature.
Don’t pay more when you don’t have to!
More from U.S. News
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Survey: 72% Say Rising Prices Have Affected Their Summer Plans
How to Use Your Credit Card for Fourth of July originally appeared on usnews.com
