Which credit card should you use for each purchase?

Why are card benefits so confusing?

One card gives a percentage back on groceries, another gives points on fuel, a third offers installments online. Add the banks’ and brands’ limited-time offers, each with its own minimum, cap and last day, and it’s hard to keep track.

1. Know your statement and due dates

A purchase made just after a card’s statement date goes onto the next statement, so you have longer to pay for it. If you’re planning a big purchase, check which card’s statement date has just passed.

Keep due dates on a calendar; missing a payment costs more than any cashback you earn.

2. Think by category

List the categories where each card is strongest: which earns the most on groceries, fuel, online shopping or travel? Make the best earner the default card for the categories you spend in most.

Example: on a $150 fuel purchase, a card with 8% back earns $12; a card with 2% back earns $3. The same purchase, four times the return, just by switching cards.

3. Read the offer conditions

• Minimum spend: offers usually apply above a certain amount.
• Cap: cashback or discounts often have a monthly or total limit.
• Sign-up: some offers need you to join in your bank’s app or by text message.
• Last day: join and complete the purchase before the offer ends.
• Where it applies: an offer may only be valid at certain stores or channels.

4. Stay balanced

Spending more than you need to earn cashback or points wipes out the gain. Use offers to route purchases you would make anyway to the right card. Paying your statement on time, and in full where you can, is the surest way to avoid interest.