Prices remain steep for just about everything these days. According to the latest data from the Bureau of Labor Statistics, the U.S. inflation rate stood at 2.8% for the year ending in February 2025. With that in mind, it’s as important as ever to make the most of your credit cards. If you’re careful to avoid piling on new debt, here are seven smart strategies to help you keep more money in your pocket.
### 1. Request a Product Change
If your credit card no longer fits your spending style, ask your issuer about a product change. You might downgrade to a card with no annual fee or upgrade for better perks and rewards. This strategy, known as a “product change,” won’t trigger a hard inquiry on your credit report, sparing you from a temporary dip in your credit score. Just remember to check on any rewards like points or miles; you don’t want to lose anything you’ve earned before making the switch.
### 2. Reallocate Your Credit Limit
Some banks let you reallocate credit limits between different cards within their lineup. You might want to do this to prevent maxing out a frequently used card or to boost spending power in an emergency. It can also protect your credit if you’re thinking about closing an account. Cindy Greenstein from The Points Mom points out that this technique can increase your chances of approval when applying for a new card with the same issuer. She suggests calling a specific reallocation line and indicating your interest mainly lies with the card and its bonuses, which can make the bank more comfortable knowing they’re not extending additional credit.
### 3. Seek a Retention Bonus
On the fence about keeping a credit card? It’s worth asking your issuer for a retention incentive. Loyal customers in good standing might receive a bonus for sticking around and meeting a minimum spend. Cindy Greenstein shares how she and her husband scored 70,000 points from such offers, a value of at least $700. Assess the offer carefully to decide if holding onto the card makes financial sense for you.
### 4. Meet Bonus Requirements with Gift Cards
Don’t break the bank just to meet a bonus requirement. If your regular spending doesn’t meet the threshold, consider buying gift cards for places you shop frequently. This way, you stay within budget while unlocking the bonus. Just tread wisely, as issuers might have rules against excessive gift card purchases.
### 5. Negotiate a Lower APR
Delia Fernandez, a certified financial planner, recommends structuring your negotiation from a strong position. If you’re paying on time and occasionally carry a balance, approach your issuer with competitive offers from other banks. “It’s worth calling them up to see if they’re willing to negotiate,” Fernandez advises, especially if it could mean lower interest rates for you.
### 6. Take Advantage of Cardholder Discounts
Log into your credit card account or directly ask your issuer about available perks and discounts. These can vary widely, from discounts on subscription services to cell phone insurance. But ensure switching your payment method won’t negate any existing autopay discounts before making the change. Balance transfer offers can also save you money by shifting debt to a lower interest card, although be mindful of transfer fees. Additionally, enrolling in merchant-specific discounts can lead to extra savings, as long as you activate the offers. For travelers, perks like free checked bags or lounge access can significantly offset a card’s annual fee.
### 7. Maximize Rewards
Diversify your credit card portfolio to capitalize on different reward programs. Pair cards that earn high rewards in certain categories with those offering consistent cash back on every purchase. If you can manage spending across multiple accounts without accruing debt, this strategy can substantially boost your reward earnings.
In conclusion, disciplined management and smart use of credit card features can help you stretch every dollar and provide financial flexibility during these inflationary times.
