Credit card strategies

Moves to leverage your card and stretch your budget

As prices on goods and services soar, every bit of value squeezed from credit cards helps.

Perhaps paying an annual fee became less appetizing. Maybe you scaled back expenses in certain categories that a credit card once rewarded, or you’re seeking opportunities to save with your credit cards.

When you aren’t focused on debt and are looking to make the most of your cards, consider these tips to free up money for other goals.

1 Request a product change Ask your issuer if you can upgrade or downgrade your credit card when it no longer aligns with your spending habits. Downgrading to a different credit card is

ideal to avoid an annual fee, while upgrading can provide more valuable perks or rewards.

For rewards credit cards, ask whether existing points, miles or cash back will be affected before making the switch.

2 Reallocate your credit limit Some issuers allow you to reallocate a credit limit from one credit card to another within their product portfolio. Reasons why you might explore this option include:

• Avoiding maxing out a frequently used credit card.

• Earning more rewards.

• Preserving credit before an account closure.

• Qualifying for a new credit card with less risk to the issuer.

Cindy Greenstein, a points and miles consultant and creator of the blog The Points Mom, has tapped this option to increase her likelihood of approval for a new card with the same issuer, but she says it doesn’t work with every bank.

“Call a special reallocation line and say to them that you only want the card and the bonus,” the New York resident says. “It usually makes them feel better to know that they don’t have to extend you more credit.”

3 Meet bonus requirements with gift cards When chasing a credit card bonus, don’t overspend to earn it. If your budgeted purchases aren’t enough to meet the bonus spending requirements within the designated time frame, consider using the credit card to buy gift cards you can use later.

You could buy a gift card to a grocery store, a restaurant delivery app or an often-frequented retailer. Just don’t overdo it because some issuers have rules against abuse.

This article was provided to The Associated Press by the personal finance website NerdWallet. Want to suggest a personal finance topic that Quick Fix can address? Email apmoney@ap.org