Credit cards sometimes get a bad rap for their high interest rates and fees, or for being the mechanism that gets some people into debt trouble. But when used strategically, credit cards can help you build credit, pile on rewards, get discounts on purchases and offer a variety of other benefits.
It may require taking a closer look at the card’s details and maybe even some haggling, but if you use the following lesser-known credit card tricks, you can level up your credit card management and come out ahead.
General Credit Card Tips
Paying your bills on time and keeping your card balances as low as possible are the best ways to build and maintain a healthy credit score. We asked some card experts to dig a bit deeper and share some of the ways they use cards strategically while preserving top-notch credit scores.
Time Large Purchases Carefully
“Make purchases right after your statement closes to maximize your interest-free float, and keep utilization low when it’s reported to credit bureaus,” says Kristy Kim, CEO of TomoCredit, a financial assistant powered by artificial intelligence. “This small timing tweak can make a big difference in your flexibility.”
So, for example, if your billing cycle closing date is June 5 and the bill is due on July 1, that time in between is known as the grace period. This means if you pay your balance in full during that time, you won’t pay interest.
Now, let’s say you make a purchase on June 7. That charge will appear on your July 5 statement, which won’t be due until Aug. 1. Because of that timing, you’ll have almost two full months to pay off before interest kicks in.
[Read: Best Travel Rewards Credit Cards.]
Make More Than One Payment per Month
If you set up auto pay for the minimum amount due and then pay manually in weekly or biweekly chunks, it can help keep your utilization consistently low, says Kim. “This creates a steady payment pattern and adds a layer of protection against missed payments,” she says.
It can also lower the amount of interest you pay if you do carry some of the balance, since your interest charge is calculated based on your average daily balance for the statement cycle.
Ask for a Fee Waiver
If you’re struggling to pay the annual fee on one of your credit cards, call your issuer to see if it can waive the fee for a year, says Adriana Ocañas, U.S. News’ consumer credit cards analyst. “I personally know a few friends and colleagues who’ve done this. Even if the issuer says no, they might offer another type of rebate,” she says, adding that it never hurts to ask.
Along those lines, Kim says that you may also have the option to downgrade a card with an annual fee if it’s no longer feasible or providing enough value. “Some issuers let you product change to a no-fee version, preserving your credit history and credit line, which helps with your score long term,” she says.
Bonus tip: You can ask your credit issuer to lower your annual percentage rate or waive a late fee if your account is in good standing.
Credit Card Rewards Tips
If you have rewards credit cards, using them strategically can help you score discounts and special perks — as long as you’re not spending beyond your means. Try these tactics for squeezing more value from rewards cards.
Assign Each of Your Cards a Job
Using your cards haphazardly could mean leaving money on the table. That’s why Ocañas says that no matter what she purchases, she always pauses to make sure she’s earning the top rewards possible. “I have a food card which earns travel rewards on grocery shopping and takeout, and two ‘everything else’ cards that earn different rewards — one earns cash back while the other earns miles,” she says. “So, depending on what I hope to accomplish or save for, I always know what credit card to use.”
Meet Welcome Offer Requirements Without Spending Randomly
If you have a sign-up bonus spend to meet but don’t have any specific large purchases to make within the time frame, consider buying gift cards for things you will need, says Ocañas. “Buy gift cards for establishments you know you frequent so you can spend them at your leisure.” For example, you can get grocery or gas gift cards since those can always be useful for covering everyday spending.
Monitor Your Apps for Limited-Time Offers
Kim says she’s seen “Pay Over Time” activation bonuses with American Express and Chase. “Sometimes they’ll offer 5,000 to 10,000 points just for enabling the feature, with no requirement to carry a balance. You can accept the offer and still pay in full to avoid interest,” she says.
Some cards may also offer perks like limited periods of low or 0% APR on purchases.
[Read: Best Rewards Credit Cards.]
Ask for a Retention Bonus
Right before your annual fee posts, Kim says it’s smart to contact customer support to request a retention bonus. “If you’ve been spending consistently, issuers may offer credits, points or fee waivers,” she says.
American Express Tips
Snag AmEx Offers Before They’re Gone
Ocañas says she has the American Express® Gold Card and is always checking her AmEx app for new offers she can add to her card. “Rewards can be small, like earning a $5 statement credit after spending $15 at McDonald’s, to a little larger, like earning 4,000 Membership Rewards points after spending $125 at Dior,” she says.
These offers come and go fast, and you have to opt in, which is why it’s worth scanning every week and activating offers you might potentially use.
Share Rewards With Another User
Devon Gimbel, host of the Point Me To First Class podcast — which covers credit card strategies to help people access deluxe travel at lower costs — shares an AmEx tip with us “they won’t tell you about.” Normally, you cannot combine AmEx points with a spouse, partner or family member directly. However, Gimbel says she has a workaround.
“If you make someone an authorized user on an AmEx Membership Rewards points-earning card, you can transfer your AmEx points to the airline or hotel loyalty account of your authorized user if that program is a transfer partner of the AmEx program,” she says. “This allows you to pool points with someone else so that you can book more travel.”
Chase Tips
Move Your Credit Lines Around
“Many people don’t know that some credit card issuers like Chase will allow you to move credit from one card to another,” says Gimbel. For example, say you have one credit card that you use for many of your expenses, like the Chase Sapphire Preferred® Card, but you keep getting close to the credit limit on that card. If you have another Chase card that you don’t use as often, you can call Chase or access the app to transfer some of that card’s limit to your Sapphire card.
This gives you an increased credit limit on the card you use more often, which can help keep your utilization in check.
Turn Cash Back Into Ultimate Rewards Points
“Some credit cards that are marketed as cash back cards, like the Chase Freedom Unlimited® card, actually function as point-earning cards if you also carry a Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business Preferred® Credit Card,” says Gimbel. All you have to do is move points earned on the cash back card to your Sapphire or Ink Business Preferred card, and then you can use them to book travel.
[Read: Best Credit Cards.]
Be Strategic, Not Reckless
Credit card tricks can be a great way to get more value from your cards and improve your credit health, but they mean nothing if you’re struggling with debt. As long as you’re managing your credit lines well and paying your balances in full as often as possible, then these more advanced strategies are worth pursuing.
More from U.S. News
Is the Chase Sapphire Reserve Worth its $795 Annual Fee?
Clever Credit: I’m Ready to Upgrade from Cash Back. What Should Be My Next Rewards Card?
11 Lesser-Known Credit Card Tricks to Start Using Now originally appeared on usnews.com
