Here's How To Choose The Rewards Credit Card That's Right For You

You can spend smarter, and Navy Federal Credit Union can help.

There are credit cards, and then there are ✨rewards credit cards✨ — aka credit cards that give you a little something extra every time you use them to make a purchase.

Basically, cardholders accrue benefits by making purchases using the card. Rewards cards can offer everything from cash back to travel benefits and are often tied to a specific retailer, airline, or hotel chain, in addition to a major credit card company or bank. It can be a win-win for cardholders, but only if they use the rewards card responsibly — i.e., by paying off purchases or making timely payments. Because, real talk: Absolutely no credit card rewards are worth carrying a balance for.

If you want to make the most of credit card rewards, step one is picking the right card for your needs.

Start by picking a credit card that will earn you rewards while you spend money on the items you already want and need; you should never change your spending habits to fit a credit card's reward structure. This is where having a firm understanding of how you spend (or, better yet, a budget!) comes in handy. If you know how and where you spend, you can review credit card offers and pick a card that rewards you for your existing lifestyle. If you're the friend who's always down to grab lunch or a bite to eat after work, find a card that rewards you for purchases at restaurants with 3x the points. Some cards also give you 2x the points at the pump and 1x the points on everything — so no matter where you're spending, you get rewarded for your purchases.

In addition to rewards, you should keep things like interest rate and fees in mind when choosing a card. If you're looking to build or establish credit, consider a credit card with little to no fees and avoid cards that have annual, foreign transaction, and/or balance transfer fees. If interest rates are a concern, credit unions might be your best bet. With a credit card from a credit union, your interest rate can’t exceed the cap under federal law. You’ll often find lower interest rates and no fees on credit union–issued credit cards.

Seriously, do your homework! If an offer seems too good to be true, it just might be.

It's not uncommon for rewards cards to come with an annual fee. In some cases, the benefits outweigh the expense. In others, they don't. If your card has an annual fee of $100 but you only earn and redeem $50 in rewards points, it's probably not worth your time. And don't forget to do this math on cards that waive their annual fee in the first year! You should also make sure the annual fee is something you can afford after year one. There are credit cards that don't come with an annual fee, so if you want something simple just make sure to do your research.

The same thing is true of sign-up bonuses. Credit card companies often offer large point incentives to new cardholders who spend a certain amount of money in the first few months. If you’d have a tough time spending $3,000 to get the 30,000 points incentives, it’s not worth it. You shouldn't be charging any more than you normally would just to earn points. Find a sign-up bonus or promotion that fits within your budget.

Signing up for the right card is only the beginning.

While choosing the right rewards card is half the battle, you still need to stay vigilant to get the most benefit from your card. Most important is keeping track of when points and perks expire. Typical rewards expire between 12 and 18 months after they’ve been earned, with some lasting as long as 24 months. Don't let those hard-earned benefits go to waste!

And make a point to learn if small changes to your shopping habits could boost your benefits. For instance, your card might be affiliated with online shopping. Online member malls allow consumers to get all their shopping done in one place and often offer incentives for purchasing items through this platform. You can usually earn bonus points or a percentage off by purchasing items through your issuer’s online mall at stores you would already shop at.

Juggling multiple cards? A little strategy goes a long way.

Contrary to what you might think, having multiple credit cards can actually be beneficial if you use them responsibly. Not only will multiple credit cards help you rack up rewards, they can also help you build credit. If you spend wisely (and only if you spend wisely!), it may be beneficial to look into opening a second credit card, especially if your primary card doesn’t have a great rewards program. And if you have multiple rewards credit cards, make sure you’re using them to get the most rewards for each type of transaction.

Remember: The best credit card reward is a healthy credit score.

No credit card rewards program can match the benefits of a healthy credit score. So, get in the habit of paying off your bills on time and in full. Setting a reminder ahead of time or automating monthly payments, especially credit card payments, can help you stay on track with your finances. If you need help, consider setting up automatic payments along with text alerts on your mobile device to ensure payments are made on time. Maintaining a healthy track record will only boost your credit score!

Navy Federal's GO REWARDS credit card offers 3x the points at restaurants, 2x the points at the pump, and 1x the points on everything else — so no matter where you're spending, you get rewarded for your purchases.

Find the card that best fits your lifestyle with help from Navy Federal Credit Union! As a member, you have access to a range of credit card options and access to a financial counselor.

All facts provided by Navy Federal Credit Union.

Illustrations by Jenny Chang / © BuzzFeed 2018