Using a credit card responsibly offers a wealth of benefits, and when it comes from your local credit union, those benefits are often even more generous. Unlike big banks, credit unions are not-for-profit institutions that reinvest their profits to provide better rates and features for members. If you’re carrying a credit union credit card, like one from North Jersey Federal Credit Union (NJFCU), you could be missing out on hundreds of dollars in value if you’re not optimizing your rewards. Here’s how to make the most of every swipe.
1. Understand Your Card’s Rewards Program Inside and Out
Every credit card rewards program is different. Some offer points for every dollar spent, while others provide cash back in specific categories like groceries, gas, or travel. Start by reviewing the terms and conditions of your NJFCU credit card:
- Are there rotating categories? Some cards offer higher rewards for certain categories each quarter.
- Is there a sign-up bonus? If your card offers a one-time bonus for spending a certain amount in the first few months, plan big purchases accordingly.
- What are your redemption options? Points might be redeemable for travel, merchandise, gift cards, or statement credits. Know which redemption gives the best value.
Pro Tip: NJFCU’s rewards cards may feature cash back or points-based systems. Familiarize yourself with how many points you earn per dollar and how much those points are worth when redeemed.
2. Use Your Credit Card for Everyday Spending
To build up rewards, use your credit card for as many routine purchases as possible within your budget, of course. Common spending categories to consider include:
- Groceries
- Gas
- Utility bills
- Streaming subscriptions
- Dining out
Just be sure you’re paying your balance in full each month to avoid interest charges that would negate your rewards.
Warning: Never use your card for spending you wouldn’t already do just to earn rewards. That’s a fast way to fall into debt.
3. Take Advantage of Bonus Categories
If your credit union credit card offers higher rewards for certain types of purchases like 3% back on gas or 2x points for dining, prioritize using your card in those situations. Some cards may even let you choose your bonus category, so pick one that aligns with your largest spending habits.
Also, keep an eye out for limited-time promotions. NJFCU, like many credit unions, occasionally runs reward multipliers during special months or holidays.
4. Stack Rewards with Loyalty Programs and Portals
Maximize the value of your spending by stacking rewards:
- Shop through reward portals. Many credit card programs have online shopping portals that give you extra points or cash back for purchases made at partner retailers.
- Double-dip with retailer loyalty programs. For instance, use your NJFCU credit card at a grocery store with a loyalty program, you’ll earn points from both programs.
5. Use Automatic Payments to Protect Your Rewards
Missing a payment could not only result in a late fee and interest charges, but you might also lose your accrued rewards or have your reward rate reduced. Set up automatic payments for at least the minimum due (ideally the full balance) to protect your rewards and your credit score.
6. Redeem Smartly and Strategically
Rewards only matter if you actually use them. Plan your redemptions:
- Avoid low-value redemptions. Points used for gift cards or merchandise sometimes yield lower value than statement credits or travel.
- Time redemptions for big savings. Save points for large purchases or travel expenses to feel a bigger financial impact.
With NJFCU’s card offerings, check to see if you get better point-per-dollar value by redeeming for travel rather than cash back.
7. Monitor for New Perks or Upgrades
Credit union credit cards frequently add new features to stay competitive. These might include:
- Free credit score monitoring
- Fraud protection alerts
- Balance transfer options with promotional rates
- Expanded reward categories
Make it a habit to review communications from NJFCU. You might discover a new feature or promotion that enhances your rewards strategy.
8. Keep Your Credit Score Healthy
Finally, managing your card wisely improves your credit score. A good credit score opens doors to even better cards with premium rewards, lower rates, and higher credit limits. Best practices include:
- Keeping utilization below 30%
- Paying balances on time
- Avoiding unnecessary new credit applications
A strong credit score also gives you the leverage to ask NJFCU for an upgrade to a higher-rewards credit card.
Final Thoughts
Credit union credit cards like those from North Jersey Federal Credit Union offer substantial rewards, low fees, and community-focused benefits. But to truly make the most of them, it takes a strategic approach to spending, redeeming, and managing your credit.
With the right habits and a bit of planning, you can turn your everyday purchases into meaningful savings and rewards.
Ready to get more out of your wallet?
Explore credit card options designed with your goals in mind at North Jersey Federal Credit Union and start maximizing your rewards today!
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Maximizing Rewards: Using Your Credit Union Credit Card for Holiday Purchases