January is the time to plan for the next 12 months. And while health and wellness usually get all the attention this time of year, you’re almost certainly taking a closer look at your finances, too. You may be setting a budget and planning to invest or open a new savings account.
But as you make these financial plans, don’t forget to take a moment to think about your 2025 credit card strategy, too.
Not sure where to start? Here’s what we recommend to start your year off on the right foot.
Identify your goals
As with most things, identifying a goal helps determine the best credit card strategy for you. If you haven’t already, consider your priorities for 2025. Some questions to ask include:
Identifying your goals will guide you as you decide which of your cards you want to use more often, which you want to shelve or downgrade, and which new ones you want to apply for.
Rearrange your wallet
With your 2025 goals in mind, take inventory of your cards and adjust what’s in your wallet (physical and digital) accordingly.
For example, I spent the last few months working to meet the minimum spending requirements to get the welcome bonus on some new cards, so I used those cards for all my purchases. However, now that I’m in the midst of new cards, I’m focusing on increasing the bonus category for the cards I already have.
If you’re in a similar situation, take a moment to look at your current cards. If any of them have revolving categories such as Chase Freedom Flex®, note what the Q1 categories are and check that you have activated them. Also, determine which, if any, of your cards earn bonus points for categories like dining, travel and grocery spending. You’ll also want to know which of your cards has the best earning structure for everyday purchases.
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Once you’ve decided which cards fall into this category, you can plan which cards to use for different purchases. You can finish your assignment American Express® Gold Card For dining and US supermarket purchases, your Chase Sapphire Preferred® Card for travel purchases and your Capital One Venture Rewards Credit Card For all other purchases.
When creating your plan, remember that some rewards will be more beneficial than others for your specific goals. If you want to focus on earning Chase Ultimate Rewards points, for example, you can choose to use your Sapphire Preferred card for dining instead. It earns 3 points per dollar on these purchases — slightly less than Gold’s 4 points per dollar (up to $50,000 per calendar year, then 1 point per dollar) — but you’ll earn points that support your goals more directly.
Keep, delete, downgrade
As you consider your card collection with your 2025 goals in mind, consider whether each of your cards is worth paying its annual fee when it’s due this year, or whether you want to. Downgrade any of them.
Additionally, assume you see any major benefits overlap between your cards, such as multiple cards that earn bonus points for streaming. In that case, you can ditch one or more in the sock drawer and focus on using just one this year to streamline your earnings.
Plan your next card
Finally, look at the gaps in your current card strategy to help you Choose your next credit card. This can be as simple as noting the type of miles you’re running low on and deciding if your next card should earn those miles. If your credit score has been affected by a lot of inquiries recently, it may be a good idea to wait a little longer to open more cards.
Regardless of your goals, it’s helpful to know what types of cards you want to get this year. Then, when a valuable bonus offer comes along, you know if it’s worth you jumping or if you’re better off doing something else.
The bottom line
As you make your 2025 plans and resolutions, remember to take a moment to adjust your credit card strategy for the year. No matter what your goals are this year, the right cards can make achieving them easier.
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