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Intermediate Guide

Getting Started with Rewards

Learn how to choose your first card, build a strategy, and avoid common mistakes

📚 15 min read • Updated November 2025
Choosing Your First Rewards Card

Start with the right foundation

Your first rewards card should be simple, have no annual fee, and match your spending patterns. Here's how to choose:

Step 1: Assess Your Spending

Look at your last 3 months of spending. Where does most of your money go?

Spending Categories

  • • Groceries
  • • Dining / restaurants
  • • Gas / transportation
  • • Travel (flights, hotels)
  • • Online shopping
  • • Everything else

Pro Tip

Most people spend the most on groceries, dining, and gas. Choose a card that earns bonus rewards in your top 2-3 categories.

Step 2: Check Your Credit Score

Different cards require different credit scores. Be realistic about what you qualify for.

740+ (Excellent)

Qualify for all premium rewards cards (Chase Sapphire, Amex Gold, etc.)

670-739 (Good)

Most no-fee cash back cards (Discover it, Capital One Quicksilver)

580-669 (Fair) or New to Credit

Start with secured cards (Discover it Secured, Capital One Secured) or student cards

Recommended First Cards

For Simple Cash Back

Citi Double Cash (2% on everything), Discover it Cash Back (5% rotating categories)

No annual fee
For Grocery Spenders

Amex Blue Cash Everyday (3% groceries), Capital One SavorOne (3% groceries & dining)

No annual fee
For Future Travel Plans

Chase Freedom Unlimited (1.5x Chase points), Capital One Venture X (2x miles)

Transferable points
Building a Card Strategy

How to grow your card portfolio over time

Most successful rewards earners don't just have one card - they build a strategic portfolio where each card covers different spending categories. Here's how to do it right:

The 3-Card Sweet Spot

Most people maximize rewards with 2-4 cards that cover all major categories:

1

Everyday Card (Base Spending)

Flat 2% cash back or 2x points on everything. This is your default card.

Example: Citi Double Cash, Chase Freedom Unlimited
2

Category Card (Bonus Spending)

High earning rates (3-6x) on your biggest spending categories (groceries, dining, gas).

Example: Amex Gold (4x dining, 4x groceries), Chase Freedom Flex (5% rotating)
3

Travel Card (Bonus + Perks)

High travel earning, transfer partners, travel credits, lounge access.

Example: Chase Sapphire Preferred, Capital One Venture X

Example 3-Card Strategy

$800 groceries → Amex Gold (4x) 3,200 points
$400 dining → Amex Gold (4x) 1,600 points
$300 travel → Sapphire Preferred (3x) 900 points
$500 other → Freedom Unlimited (1.5x) 750 points
Monthly total: 6,450 points ($96-129/month)

That's $1,150-1,550/year just from optimizing card usage!

Important: Only add cards when you're comfortable managing them. Start with 1-2 cards and add more over 6-12 months as you build experience and credit history.

How to Maximize Your Rewards

Pro tips to earn even more

Use the Right Card for Each Purchase

Always check which card earns the most for each category. Use your grocery card at supermarkets, travel card for flights, etc.

Take Advantage of Sign-Up Bonuses

Most cards offer 50,000-100,000 bonus points after spending $3,000-4,000 in 3 months. This alone can be worth $500-2,000 in travel!

Pay Bills with Credit Cards

Many bills (internet, phone, utilities) can be paid by credit card for extra rewards. Just make sure there's no convenience fee!

Stack Rewards with Shopping Portals

Use credit card shopping portals before online purchases to earn 2-10x bonus points on top of your normal rewards.

Watch for Limited-Time Offers

Card issuers often run promotions (spend $X get Y bonus points, 10% back at specific stores). Subscribe to offer alerts!

Use Dining Programs

Enroll in Chase Dining, Amex Offers, and similar programs to earn bonus points at participating restaurants.

Common Mistakes to Avoid

Don't let these errors cost you rewards

Carrying a Balance to "Earn More"

Interest charges (15-25% APR) will always exceed your rewards (1-5%). Always pay in full!

Paying Annual Fees Without Using Benefits

If a card has a $95 annual fee, make sure you're earning at least $95 in extra rewards vs a free card.

Applying for Too Many Cards Too Fast

Space out applications by 3-6 months to avoid hurting your credit score. Chase has a "5/24 rule" - you can't get their cards if you've opened 5+ cards in 24 months.

Spending More to Earn Rewards

Only earn rewards on purchases you were already going to make. Don't buy things just for points!

Not Tracking Your Cards

With multiple cards, it's easy to forget which one to use. Use a tool like Card Curator to optimize automatically!

Closing Old Cards (Usually)

Closing cards reduces your available credit and credit history length, hurting your score. Keep old no-fee cards open unless there's a good reason to close.

Letting Points Expire

Some points expire after 12-24 months of inactivity. Make a small redemption or earn a few points to keep them alive.

Your First Year Timeline

Realistic roadmap for building your rewards strategy

1

Month 1-2: Get Your First Card

Apply for one beginner-friendly card. Start using it for all purchases. Set up autopay. Track spending.

2

Month 3-4: Hit Sign-Up Bonus

Meet minimum spending requirement (usually $3,000 in 3 months) through normal spending. Earn your bonus!

3

Month 5-6: Optimize & Add Card #2

Analyze your spending. Identify categories where you could earn more. Apply for a second card that fills those gaps.

4

Month 7-12: Build Your Portfolio

Continue managing both cards responsibly. Consider adding a 3rd card if you've mastered the first two. Start planning your first redemption!

Key Takeaways

Start with 1-2 simple cards that match your spending patterns and credit score

Build to 2-4 cards over time: everyday card, category card, and travel card

Maximize rewards by using the right card for each purchase category

Never carry a balance, pay annual fees you don't use, or spend more just for rewards

Take 6-12 months to build your strategy - don't rush into too many cards at once

Next Steps

Ready to Learn About Points Programs?

Understand transferable points programs and how to get 5-10x more value from your rewards