As we step into 2025, it’s time to refine our credit card strategies based on last year’s spending habits. With a portfolio that includes Discover It, Capital One Quicksilver, Citi Custom Cash, American Express Blue Cash Preferred (BCP), U.S. Bank Cash+, Capital One VentureOne, Chase Freedom Flex, and the U.S. Bank Altitude® Connect Visa Signature Card (Smartly), there’s ample room for optimization.
Currently, the strategy involves using the Citi Custom Cash for gas, Amex BCP for groceries and Spotify, U.S. Bank Cash+ for utilities and internet, Discover and Chase for rotating 5% categories, Chase Freedom Flex for dining, and the Smartly for miscellaneous spending. However, with an online shopping expenditure of nearly $8,000 last year, only utilizing $2,000 to $3,000 of the Amex BCP’s $6,000 limit, there’s clear potential for improvement.
One avenue to explore is the gift card hack, where purchasing gift cards for supermarkets like Hy-vee, Fareway, and Aldi could maximize rewards. These stores are within a reasonable 70-mile radius, making the strategy feasible. To answer the question, yes, gift cards can indeed be bought online, including at retailers like Kroger, which offers a wide range of gift cards through their website, allowing for strategic purchases to earn rewards.
Considering moving away from the Smartly, which offers a flat 2.5% cash back, to something like the Bank of America Customized Cash Rewards credit card could be beneficial. This card provides 3% cash back on a chosen category, which could be set to online shopping, potentially increasing returns on the $8,000 spent. With the possibility of earning up to 5.25% cash back if you’re a Bank of America Preferred Rewards client, this could be a significant upgrade.
Another card on the horizon is the Robinhood Gold card, for which there’s a waitlist. If selected, this could offer unique benefits tailored to investment and spending habits, potentially reshaping the current strategy.
Given these options, shifting some focus towards online shopping with a dedicated card like the Bank of America could enhance rewards significantly, especially if combined with the gift card strategy. This move would align spending patterns with reward maximization, ensuring that every dollar spent online contributes more effectively to cash back or points accumulation.
As we navigate through 2025, optimizing credit card usage based on past spending patterns like this could lead to substantial savings or rewards, making it a smart financial move for the savvy consumer.
Sources:
https://www.investors.com/personal-finance/best-credit-cards-for-2025/
https://www.nerdwallet.com/article/credit-cards/credit-card-strategies
https://www.forbes.com/advisor/credit-cards/best-credit-cards-2025/
https://www.moneygeek.com/credit-cards/best-credit-cards-2025/
h/t MeGustaChorizo
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