Credit: Shutterstock photoThis content is made possible by our sponsor; the views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
After you dust the baseboards and before you tackle your cluttered garage, focus that spring cleaning zeal on your credit cards. This is especially important if it’s been a while since you seriously considered how well your cards work for you.
Here are five ways to make sure you’re getting the most out of your credit cards.
Old cards
Pull out seldom-used credit cards tucked away in the recesses of your purse or wallet or stashed in the bottom of your junk drawer.
Step 1: Get online or call customer service to find out the status of your account. Some issuers will deactivate accounts after long bouts of inactivity, even without notifying you. If it’s closed but you would like to keep using it, ask if the old account can be reinstated without having to go through the entire application process.
Step 2: If the account is open, but you don’t use the card, consider why. If you want better perks or rewards, you can ask the issuer to upgrade to a different card that you would use more often. If you need a larger credit limit, you can also request that from your issuer.
Step 3: It helps your credit score to keep a card open even if you don’t use it that much. For a rarely used card, use it for a regular payment that you need to make, such as your cell phone service or annual car insurance payment.
Rewards
Organize your reward cards to get the most from each purchase and tally up the rewards you have already earned.
Step 1: Figure out how to maximize travel rewards for future plans. If you use American Express Membership Rewards or Chase Ultimate Rewards, determine if you should transfer to airline or hotel loyalty programs for your summer travel plans.
Step 2: Revisit which cards are best for specific purchases, so you can maximize the rewards you earn. Make a cheat sheet that you can tuck into your wallet in case you forget. Also, be sure to register for any rotating categories on certain cash back cards.
Step 3: For rewards on cards that you don’t use that much and don’t expect to use much in the future, consider your options for redemption. If you can’t get a statement credit, consider redeeming for gift cards or merchandise. Even though that’s likely not the best value, it provides some return on point you otherwise may never use.
Examine statements
Pull out the transaction history for each card since the beginning of the year.
Step 1: Look for any odd transactions that you’re sure you didn’t make. If there is suspicious activity—and no one in your household fesses up to the purchase—contact your issuer to report possible fraud.
Step 2: Find any recurring charges for subscriptions that you don’t use anymore. Canceling these charges could save you tens of dollars a month that can go to better uses.
Step 3: When looking for recurring charges, don’t forget the ones issuers may be charging you for add-on products such as credit monitoring or credit card debt protection. Several years ago, many issuers were slapped by the Consumer Financial Protection Bureau for deceptively selling these products to consumers who thought they were free.
New cards
As you look at the cards you have, maybe you realize that they are not cutting it.
Step 1: Analyze your spending habits. Has your financial lifestyle changed since you last applied for your go-to credit card? Maybe your new job has more business travel. Or maybe that new baby in your life has curbed eating out. Figure out where you’re spending the bulk of your dollars.
Step 2: Now consider which type of credit card could maximize that spending. Look at offers you receive in the mail, but also investigate offerings online. Consider the rewards rate, annual fee and sign-up bonus before committing to new card. Here are our top picks.
Step 3: Before applying for a new card, find out your credit score to make sure you’ll qualify. Otherwise your credit score could take a dent even if you don’t get the card. FreeCreditScore—part of credit bureau Experian—and Discover both offer free FICO scores, while other issuers print free scores on their monthly statements.
Tech upgrades
If you’re still getting monthly paper statements from your issuers, maybe it’s time to step up your tech game when it comes to credit cards.
Step 1: If you haven’t already, sign up for text or email alerts on all your credit cards. These will ping you after your card is used for a purchase that exceed an amount you set. You can even set that minimum at $0, so you can know about any transaction, no matter how small.
Step 2: Download your issuer’s mobile app so you can monitor your charging on the go with a simple swipe. This is especially helpful if you’re watching your budget closely.
Step 3: Sign up for any extra credit card benefits. For instance, Discover offers its cardholders a Social Security number monitoring service that tracks risky websites that illegally sell or trade personal data. MasterCard provides a similar service through its ID Theft Alerts. Both require registration.
The article, 5 Ways to Spring Clean Your Credit Cards , originally appeared on ValuePenguin.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
