How to Tell If You’re Leaving Rewards on the Table
Measure your current return
Start by figuring out what your current cards actually earn on your spending, using a flat 1-cent point value and subtracting any annual fees. This is your effective return, and it is the number to beat, as explained in how to calculate your effective rewards rate. Most people have never done this and are surprised by how low or high it really is.
Compare against the best-matched cards
Now see what the best cards for your spending would earn. Enter your monthly spending into the credit card rewards calculator and it ranks every card by first-year value; compare the top result to what you earn today. A large gap means your current setup is not matched to how you spend, a common issue covered in finding the best card for your spending.
Decide whether the gap is worth closing
A small gap is not worth the hassle of a new application, but a few hundred dollars a year usually is, especially if a welcome bonus is involved. Weigh the switch using is it worth switching cards, and remember that adding a category card while keeping your current one is often better than replacing it. Review this once a year, since your spending and the best offers both change.
Frequently asked questions
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