There are many ways to maximize credit card bonus offers. One simple way is to pay your bills on time. You can also select a bonus category, time your purchases to coincide with the bonuses, and avoid taking on too much debt to get points. The following are tips to maximize bonus offers:

Paying your credit card bills on time

You can earn rewards by paying off your credit card bills on time. However, in order to earn these rewards, you must pay off your balances in full each month. Even if this seems like an impossible task, it is a great habit to get into. It’s crucial to keep your balances below 40%. While you’re trying to earn American express gold benefits and bonuses, you should also be aware that late payments can hurt your credit score. Ideally, you’ll pay off your balance at the end of each month. Having this automated feature will allow you to stay up to date and avoid overdue balances.

Many credit card companies offer rewards for paying your bills on time. You can even get airline miles for paying your bills on time. This means that paying off your credit card early can earn you bonus miles or points. You can get these rewards without having to spend a dime on extra purchases. You can choose the payment method that best suits your needs, depending on what your situation is. Remember to always pay off your bill before the due date.

Choosing a bonus category

Most credit card issuers have a vague concept of what they consider to be a bonus category. For example, the Chase Sapphire Preferred(r) Card can earn 2x points on every dollar spent on travel, which may include passenger trains, ferries, taxis, and parking lots. The Citi Thank You(r) Premier Card earns 2x points on entertainment, which may include tickets to museums, circuses, and aquariums. But which category will be the best one for you?

Timing your purchases to coincide with bonus categories

One great way to maximize the benefits of credit card bonuses is by timing your purchases to coincide with credit card bonus categories. If you’re planning on purchasing a new refrigerator or a new television, wait until a bonus category is available before you buy it. In addition, you can also delay the application for a new credit card until after you make your large purchase. This way, you can earn welcome bonuses on your new card.

Avoiding churning

The benefits of churning are numerous. It can save you money by avoiding annual fees, and the sweet rewards you can accumulate from various credit cards can include airline miles, free flights, and hotel stays. It’s even possible to get rewards like cashback. And it is legal! In fact, you can even travel to Fiji and South Africa for free, if you have the right credit cards.

The main drawback to churning is that it can hurt your credit score. When you open multiple credit card accounts at once, you raise your credit utilization ratio. The credit utilization ratio is the second most important factor of your FICO score and is thirty percent of the total. This is why it’s important to keep it under 30%. However, this is not easy if you have multiple credit cards. Waiting at least three months before applying for a new card can help.