Credit cards, by nature, are in the business to make money – and every reward they pay you costs you. As a result, credit card companies have a genuine incentive to make rewards hard to get, hard to redeem, and generally hard to know if you’re getting the best deal.

However, if you choose your credit cards carefully, the rewards you will receive can benefit you a lot. For example, if you choose a credit card with an unlimited 2% refund, guess what? Your business is 2% cheaper as long as you follow good credit card management principles.

Here are our top tips to ensure you maximize your credit card rewards.

1. Choose your card(s) carefully

Credit card rewards generally fall into two categories: cash back or travel rewards such as miles or points. Cashback takes less work, but you can get more value with miles or points that can be used to pay for flights and hotel stays.

In addition, you should consider whether you need to travel frequently and whether there is an airline or hotel chain that tends to function better on their regular routes. Finally, many credit cards offer more rewards for spending in certain categories, so it’s worth choosing a card that matches your spending habits. For example, Bonus categories on CIBC Aventura® Visa* Card include gas stations, grocery stores, and drug stores.

If you have trouble remembering the categories, write it on a post-it and paste it directly onto the card. Or, if you want something with less maintenance, opt for a card that offers a constant earning rate on every purchase, like the Neo Credit Card.

2. Redeem your miles for travel

If you have a travel reward card like the American Express® AIR MILES Platinum Credit Card, the value of miles or points can vary dramatically depending on how they are redeemed. Research shows that it’s often better to use your points for travel rather than gift cards or online shopping. For example, a point may be worth 1 or 2 cents when redeemed for flights or hotel stays, but only half a penny or less when used for other options.

Some cards do not allow you to redeem points for cash or statement credits. So if you have a hotel reward card, make sure you are traveling enough for the card to be worth earning points. As a result, you will be able to use it for free hotel nights.

3. Don’t miss the sign-up bonuses

Sign up bonus shouldn’t be the number one priority while your credit card but don’t forget about it either. These bonuses can yield even more rewards, usually for spending a certain amount of money in the first three months. For example, New American Express® AIR MILES®* Platinum Credit Card Cardmembers earn a Welcome Bonus of 2,000 AIR MILES®* Bonus Miles when you charge a total of $1,500 in purchases to your Card within your first three months of Cardmembership. That’s enough to redeem for $200 towards your purchases with AIR MILES®* Cash. Don’t choose a card with a subscription spending limit that you cannot comfortably reach because that’s a recipe for long-term disaster.

In conclusion

There are cards out there that offer great cash rewards, but finding the best cashback credit cards is the trick. If you have a good one, maximize your rewards by spending everything on the card and paying in full each month. Of course, the more you charge, the more rewards you receive. Just don’t get into debt!

Readers, what other tricks do you have to maximize your credit card reward programs?