How I earned more than $10,000 in credit card rewards (2024)

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Rewards credit cards have become increasingly popular. Almost three-quarters of Americans have one, according to a Wells Fargo study. And it makes sense — earning cash back or points on every purchase is appealing.

The average American spends roughly $18,000 on their cards each year. If you’re using a basic flat-rate cash back card offering 1.5% on your spending, you will earn $270 in cash back annually.

While $270 is a solid amount, it may not move the needle on your financial goals, like building a nest egg or funding a dream vacation. To achieve those milestones, you'd need to earn considerably more.

I have 11 credit cards that I use to maximize rewards and perks — and with them, I have earned over $10,000 in miles, points, and cash back.
If I had relied solely on that 1.5% cash back card, I would have had to spend more than $650,000 to reach that level. Instead, I used a few key strategies to earn those rewards while spending far less. Here’s how.

I leveraged sign-up bonuses

Sign-up bonuses are one of the most effective ways to quickly accumulate credit card rewards.

Credit card companies are constantly competing for new customers. Even if you never pay a cent in interest, card issuers can still profit from you in other ways. To attract new users, rewards cards often offer enticing sign-up bonuses.

One way rewards cards do this for new customers is by offering sign-up bonuses. These bonuses are often a set amount of points, miles, or cash back after you spend a certain amount within the first few months of opening the card.

If you’re looking to earn many credit card rewards, sign-up bonuses are the quickest way.

What to know before applying for a new card to earn the sign-up bonus

Before diving into the world of sign-up bonuses, it's crucial to keep a few factors in mind:

• Applying for a new card results in a hard inquiry on your credit report, which can temporarily lower your credit score.
• Many credit cards charge an annual fee, so getting a new card may mean paying that fee.
• Some cards require significant spending, sometimes $4,000 or more, to qualify for the bonus. If you overspend to meet the requirement, you may offset the benefits of the bonus.
• Not all rewards cards offer the same flexibility regarding redeeming points or miles.

Even if a card has an exciting sign-up bonus, consider whether you can earn it without overextending yourself. You should also consider whether the annual fee is justified and how you’ll use the rewards.

My experience with sign-up bonuses

I began applying for rewards cards during college, earning modest sign-up bonuses from student credit cards. As my credit score improved, I graduated to higher-end rewards and travel cards.

Two of my preferred card issuers are American Express and Chase. I strategically opened several personal and business credit cards from each issuer. Over time, I earned over 400,000 American Express Membership Rewards points and 400,000 Chase Ultimate Rewards points. Over 600,000 of the points were from welcome bonuses alone.

Here's a breakdown of the sign-up bonuses I’ve earned, including the spending requirements and rewards. Keep in mind that current bonuses may differ, both in spending requirements and reward amounts.

I chose cards that aligned with my spending habits

While sign-up bonuses offer an initial boost to your rewards, they are a one-time benefit. Most issuers have rules that restrict you from earning a sign-up bonus on the same card more than once in your lifetime or within a specific timeframe, even if you close the card and reapply later.

To maximize your ongoing rewards, choosing cards that complement your spending patterns is important.

Understanding rewards structures

Different reward cards offer varying reward structures. Some provide a set amount of rewards regardless of where you use the card. Others offer elevated rewards for spending in specific categories.

Most of my spending is at grocery stores, gas stations, restaurants, and on Amazon. Based on that, I strategically carry the following cards to optimize my rewards:

• Blue Cash Preferred® Card from American Express: I use this card to earn 6% cash back on U.S. supermarkets (up to $6,000 in spending per year, then 1%) and 3% cash back at U.S. gas stations. This card has a $0 intro annual fee for the first year, then $95. See rates and fees.
• The Amazon Store Card: I use this card to earn 5% cash back on Amazon.com purchases as a Prime member ($139 annual membership).
• Chase Freedom Unlimited®: I use this card to earn 3% cash back on dining at restaurants.
• Citi Double Cash® Card: I use this card to get 2% cash back on everything else.

In 2023, my grocery spending earned me $222.58 in cash back using my Blue Cash Preferred card. If I had used my flat-rate Citi card instead, I would have only earned $74.19. My Amazon and Chase cards have helped me earn cash back beyond the standard 2% offered by my Citi card.

By managing a few extra cards and using them for different types of purchases, I've earned hundreds of dollars more in rewards than using a single card for all transactions.

I optimized redemptions for maximum value

Earning credit card rewards is only half the battle. How you redeem those rewards can significantly impact their overall value.

Cash back vs. points vs. miles

Choosing the best card depends on whether you want to earn cash back, points, or miles.

There is little room for optimization for cards that offer straightforward cash back. One dollar in cash back is worth the same whether you redeem it as a statement credit or deposit it into your bank account.

However, you can stand to earn much more if you earn points or miles and redeem them strategically. However, redeeming these types of rewards is a bit more complex.

Redemption options for points and miles

Most credit cards that earn points offer a wide range of redemption options, including:

• Cash back
• Merchandise, gift cards, and other products
• Transfers to partner airline and hotel loyalty programs
• Travel bookings through the card issuer's portal

In general, redeeming points for cash back provides the lowest value. American Express, for example, allows you to redeem Membership Rewards points for only 0.6 cents each. Chase offers a slightly better rate of 1 cent per point. However, exploring other redemption options can often obtain significantly more value.

For example, American Express allows for point transfers to travel partners like Delta Airlines or Hilton Honors. Depending on the partner, rewards can be worth around 2.0 cents per point when transferred.

The Chase Sapphire Preferred card offers 25% more value when booking through Chase Travel, and the Chase Sapphire Reserve card offers 50% more value. So, 50,000 points would be worth $625 and $750 when used on travel, respectively.

My personal redemption strategy

My approach to redemptions involved earning points over an extended period and saving them for larger, high-value redemptions.

I applied for The Platinum Card® from American Express Exclusively for Charles Schwab. This card allowed me to redeem Membership Rewards points for a deposit into my Schwab brokerage account. At the time, the rate was 1.25 cents per point. By cashing in over 400,000 points, I earned more than $5,000 in rewards.

It’s important to note that since then, the card’s cash-out rate has dropped to 1.10 cents per point.

I also upgraded to the Chase Sapphire Reserve® card, which offers a 50% bonus when using points to book travel through Chase's travel portal. This meant that my 400,000 points were worth over $6,000 in travel.

Combined, these redemptions provided enough value to cover trips to Italy and Florida for two people — without any out-of-pocket expenses.

It's important to note that point values and transfer options may change, so staying informed about the best redemption options requires ongoing research. But, by dedicating some time to finding high-value redemptions, you can really increase the worth of each point you earn.

The bottom line

While credit card rewards can help you earn something on your regular spending, achieving even more benefits is possible by employing a strategic approach. By focusing on earning welcome bonuses and seeking out the most valuable redemption options, you can accumulate rewards worth thousands of dollars.

1. If you're ready to take your credit card rewards game to the next level, consider the following action steps:
2. Research and apply for cards with sign-up bonuses that you can comfortably meet.
3. Analyze your spending and choose cards with rewards in your most frequent categories.
4. Explore the redemption options for your points or miles, focusing on those that provide the highest value.
5. Stay informed about changes in point values and transfer partners to ensure you always get the best return on your rewards.

You can transform your everyday spending into big rewards by dedicating a little time and effort.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.