— PLAY THE GIFT-CARD SHUFFLE
Credit card rewards for specific types of
spending are typically based on where you
make the purchase, not what you buy. So if
your credit card gives you outsize rewards for
supermarket shopping, for example, you can
buy gift cards for restaurants, retailers or home-
improvement stores while you’re in the grocery
aisles. Exceptions may apply — for example,
the supermarket may not allow you to buy gift
cards with a credit card.
— OPTIMIZE THE GRACE PERIOD
If you always pay your credit card balance
in full but have a big purchase that will take
weeks to pay off, consider timing it just right
to maximize your grace period. Make the
purchase after your statement period closes.
Then, you have about a month before the
next statement closes, plus the grace period,
which by law is at least 21 days. All told,
that could be more than seven weeks of an
interest-free loan. Note: The grace period
doesn’t apply to cash advances.
— GO WITH TWO
Issuers would love you to use only their
rewards card for all transactions. But one of
the best tactics is to use two cards: one that
gives you high rewards for certain categories
of spending — such as 3% to 5% back at gas
stations or restaurants — and another card that
gives you good rewards on everything else,
with “good” being 1.5% or 2% back. That way
you reap substantially more rewards with the
hassle of managing only two cards.