3 things to do with your credit cards before 2023

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2022 will end in the blink of an eye.


Key points

  • Most credits are use or lose. If you have unused annual statement credits or benefits, try to go through them before the end of the year.
  • Each card in your wallet should pay for itself. Check your costs and rewards to make sure you’re getting what you pay for.
  • Card issuers have many rules regarding sign-up bonuses. Plan which cards you will want to apply next year so you can develop a strategy for maximum return.

Believe it or not, the new year is fast approaching. When thinking about the year-end tasks you need to accomplish in the coming weeks, make sure your credit card are on the list.

On the one hand, you need to make sure you’ve taken advantage of everything your cards have to offer for 2022. But you also need to think about the year ahead and how you’re going to get the most out of your cards. credit. in 2023. Here are some tasks to add to your to-do list before the new year.

1. Use your annual credits

One of the latest trends for rewards credit cards offers various statement credits for specific types of purchases. For example, you can earn a $50 credit for your purchases from a certain retailer or from a particular brand. These types of loans have become increasingly common, especially with travel rewards cards with high annual fees.

On the one hand, they’re great if you can get the most out of them; credits can easily offset high annual fees in many cases. The downside is that if you don’t use them within the time limit, you lose them. If you have an annual airfare credit, for example, you must use that credit before the end of the calendar year or you lose it entirely.

Now is a good time to take a look at all your rewards cards and make sure you’ve used as many credits as possible before they expire. Be careful; don’t go on a spending spree just to exhaust your credits. They are no need to blow your budget on things you wouldn’t normally buy.

2. Audit your rewards and costs

Depending on when your credit card annual fee comes in, this may be something you should do several times throughout the year. But at the very least, you should sit down once a year and check your credit cards.

What does it mean? Look at every credit you own, then assess its costs and rewards. Every card in your wallet should serve a purpose. And each card you pay an annual fee for should earn enough to offset these costs — and then some.

If you find you’re not using a particular card, it’s time to make some choices.

If the card has no annual fee, maybe that choice is to just put it in a drawer instead of carrying it around. This may make room in your wallet for a different card that will help you better. maximize your rewards.

But if you’re paying for that card every year, you have to do the math. Do you earn enough from this card to pay the annual fee? If not, it may be time to cancel or downgrade the card.

3. Plan your applications for next year

It seems that issuers make new rules every year about who can get which card and which rewards. For example, most issuers now limit how often you can earn sign-up bonuses not just on individual cards, but for entire families of cards.

All these new regulations require you to be more organized than ever to get the most out of your new map applications.

Now is a good time to think about your credit card needs in the coming year. Do you plan to do a lot of traveling? Determine which hotel and airline credit cards will be most valuable for your travels. Do you have big purchases on the horizon? find good sign up bonus you can take advantage of it when the time comes.

Don’t just drool over bonuses and rewards, though. Keep in mind each issuer’s rules about how many recent card accounts you can open or how long to wait between applications. If you want a Chase card, for example, you might need to request that card first to stay on the right side of their 5/24 rule.

The festive season is about to kick into full swing and the New Year will be here right behind it. Take the time now to get your credit cards in order and plan for next year. Your future self will thank you.

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