As we prepare to enter a new year, many of us are taking stock of what aspects of our life we wish to improve upon and making resolutions accordingly. And here at TPG, we put credit cards at the very top of our priority list.
It doesn't matter if you're trying to maximise the value of your points and miles redemptions or boost your credit score; we all have credit card practices that we'd like to start or stop doing in the next year.
In the next section, many members of the TPG team discuss the credit card resolutions they have made for 2023 and explain why you may also wish to make the same resolutions.
Follow the offers made by merchants.
Melanie Lieberman, the managing editor of TPG, intends to locate a more effective method for tracking which cards have what offers. She explains, "I often curse myself for missing an offer because I didn't recall it was activated on a specific card," and she goes on to explain that this happens rather frequently.
Katie Genter, a senior writer specialising in points and miles, has made it one of her New Year's resolutions to pay more attention to the credit card merchant offers she receives, such as those from Chase and Citi. She explains, "My husband and I have a variety of lists in which we make note of potential deals that we may utilise; nevertheless, we need to come up with a more effective organisational method. Instead of just looking into these deals whenever the thought occurs to me, I want to make it a point to do so regularly, maybe once a week. If we don't make the most of these offers, we're effectively throwing away money because there's plenty of value to be discovered on the purchases we're making anyhow (for example, I just earned 10% back on a Hyatt stay due to a Chase Offer), and we're already making those purchases."
It is simple to save money and increase the number of points and miles you earn on your transactions by searching for merchant offers and linking them to your credit cards. Make sure that you are using all of your credit cards to their full potential this year and that you are making use of all of the available merchant incentives.
Related: how taking advantage of discounts from retailers may save you hundreds of dollars annually
Maximize expenditure categories
This year, Erica Silverstein, an editor at TPG, wants to make sure that she is collecting bonus points in all of the expenditure categories she participates. She states, "My resolve is to locate a card that offers me extra points for in-person supermarket and petrol spending since I'm not optimising these significant expenses right now." This is about the fact that she is not currently making the most of these major expenditures.
Consider which credit cards provide the most bonus points or miles for the areas in which you make the most purchases as you plan out your credit card strategy for the next year. It's possible that you already have credit cards that give benefits for the key categories you shop in. If this is the case, it's important to be strategic about which cards you use for certain kinds of purchases. If you find that you are unable to maximise certain spending categories, you may want to consider adding a card to your wallet to make up for the difference in earnings.
Avoid travel portals
The senior editor of credit cards at TPG, Matt Moffitt, wants to put more of his attention on breaking a habit. He explains, "My new year resolves to avoid the trap of believing that I may earn more points on my flight by booking through a travel portal, such as the ones offered by Chase or Capital One. My experience with needing to make modifications to my plans in 2022 was filled with too many frustrating events; it's a nightmare with the portals and airlines passing the buck to one another. I would much prefer to forego the points in exchange for a booking process that is more simplified."
When deciding whether to utilise a travel site or to book your trip directly with a hotel or airline, there are several factors to take into consideration before making a final choice. There are positive aspects, such as the accumulation of more points and miles, but Matt brings to our attention that there are also potentially aggravating disadvantages. When it comes to purchasing travel, you should be sure to consider if simplifying the booking process or increasing the number of points earned is more essential to you.
Comparing using a gateway vs making reservations on your own directly
Cut benefits overlap
David Slotnick, a senior aviation business reporter for TPG, is interested in taking a bit more basic approach to the card game. He explains, "I have an excessive number of cards with perks, many of which are either unnecessary or underutilised by me. My goal for the new year is to go through all of my credit cards, investigate their associated fees and advantages, and trim down my wallet."
When we focus on cards that have the greatest welcome bonuses or the advantages that are the most eye-catching, we run the risk of collecting many cards that have benefits that are quite similar to one another. Although we frequently believe that the annual fees for our preferred credit cards are well worth the money, David's proposal to conduct a personal audit is a sound one. If you find that you have numerous cards that provide advantages that are comparable to one another, it may be beneficial to consolidate by eliminating some of the cards or reducing the benefits they provide.
Should I go ahead and close my credit card account?
Be deliberate when you find yourself under the Chase 5/24 rule
TPG employees are aware that the card decisions we make when we find ourselves under the Chase 5/24 regulation are extremely important.
The expert on credit cards, Ryan Smith, and his wife are currently deliberating over which new Chase cards they would want to open next. According to him, "my wife and I are both under 5/24 right now since over the last year we have had a big dosage of business credit card applications and upgrade offers rather than new applications." These were received rather than new applications.
"Since we did not anticipate this happening, we want to approach it with a strategic mindset. My wife has already applied to the Chase Sapphire Reserve and the Ink Business Unlimited Credit Card to take advantage of the best-ever offers that were available for both cards at the end of last year. I am looking at the several credit card possibilities that United offers, and I also want to apply for the Ink Business Unlimited card."
Kyle Olsen, a reporter for TPG Points and Miles, is now in a scenario comparable to yours and is making appropriate preparations. He explains, "When January rolls around, I'll once again be eligible for Chase's 5/24 rule. Even though I don't see much value in Chase's portfolio of Marriott co-branded cards (particularly given the unpredictability of Marriott Bonvoy points), I'm thinking about applying for the Marriott Bonvoy Boundless Credit Card."
"If the grandfathered regulations that are now associated with the Ritz-Carlton Rewards Credit Card from Chase continue as they are, I will be eligible to move over from the Boundless card to the Ritz-Carlton card once I have had the Boundless card for a full year. It would be beneficial to have the Ritz-Carlton credit card, even though the annual cost is $450 rather than the $95 that is required for the Boundless card. The Ritz-Carlton credit card comes with several valuable perks, such as three free upgrades to the Ritz-Carlton club, $300 in flight credits, an 85,000-point free night certificate, and the same extensive insurance perks as the Chase Sapphire Reserve."
The information on the Ritz-Carlton Rewards Credit Card has been gathered by The Points Guy without any involvement from Ritz-Carlton. The information regarding the card that can be seen on this page has not been vetted or supplied by the entity that is the issuer of the card.
Start here if you are unsure of whether or not you are younger than 5/24. And if you are under the age of 24 this year, or if you will be this year, we recommend that you get your next card from Chase while you still have the chance to do so.
Related: the most effective strategies for making utilisation of your Chase 5/24 slots
Redeem remaining points
Benjamin Smithson, a senior writer for TPG, wants to clear off the different outstanding points and miles balances in his account. According to him, his New Year's objective is to "clean off whole balances. I keep finding accounts with between 5,000 and 10,000 points, which I may never use because the number of points is typically too little to redeem for anything of any value."
If you haven't checked in a while, you could be shocked to find numerous little rewards balances on cards that you've relegated to your sock drawer. If you haven't looked, you should check again. It is a good idea to check the balances of all of your rewards programmes at the beginning of the new year and either cash in your points or devise a strategy to earn more.
Related: tips on how to make the most of your remaining points and miles
Bottom line
Take some time to think about the ways you used your credit card in the past year and make some plans for the year 2023 if you haven't done so already.
If you feel like you need a refresher on the fundamentals, you can always refer to our beginner's guide or the 10 commandments of credit card rewards. Or maybe you've finally reached the point where you're ready to apply for a premium credit card.
You may be assured in the knowledge that TPG will be here to help you in working toward your objectives throughout the whole year, no matter what those goals may be.