Many consumers use their credit cards in a very simple manner: spend and pay the statement each month. However, there is much more to credit cards than meets the eye.
In fact, many card issuers will divide up your spending based on category for you to show you where you regularly spend. From there, you may be able to replace one card for another to increase the amount of rewards your earn.
However, by switching your main credit card to one that better complements your largest spending category, you can drastically make a difference in the amount of rewards you earn.
For this example, we’ll focus on the amount owed and amount of credit used portion. Let’s say your credit card has a credit limit of $5,000 and your regular balance is around $2,000. That means you’re using 40% of your credit allotted, which can be detrimental to your score. It’s recommended to avoid using over 30% of your allotted credit line.