Credit card rewards – such as cash back, cell phone protection, no foreign transaction fees, and more – are a welcome bonus on everyday spending and can often feel like an added benefit. But in the race to earn rewards, some consumers may end up paying more in interest or fees than they gain in added value.  

One recent Bankrate survey found that 72% of cardholders who carry balances month-to-month are still trying to earn rewards, even while managing ongoing debt.[1] That means a large number of people are potentially overspending or paying interest just to chase points.

“Rewards can be a great way to get extra value from everyday spending, as long as they’re used within a solid financial plan,” notes Ronnie Allan, PNC’s Head of Consumer Card and Personal Lending. “With the right approach, rewards work best when they enhance your overall financial strategy rather than drive your spending.”

Here are some ways to help make sure you’re using your credit cards responsibly while still enjoying the benefits.

The Smarter Way to Use Rewards Cards

Earning rewards can be a smart financial tool, especially when you use your card for spending you already plan for and that fits comfortably within your budget. A few things to keep in mind:

Pay a little more when you can

Many people pay the minimum because it best fits their monthly budget, but when you do have room to add even a small extra amount to your payment, it can make a meaningful difference over time. Paying just a little more than the minimum can help reduce interest costs and shorten how long it takes to pay down a balance – allowing you to enjoy rewards without letting borrowing costs outweigh the benefits.

Don’t spend just to earn

If you’re using a rewards card to pay for expenses you’ve already budgeted for – such as groceries, gas or streaming services – your points can add up meaningfully. Stick to using your card for planned everyday expenses instead of chasing extra points. Treat rewards as a bonus rather than a motivation to increase your spending.

Watch out for fees

Annual fees and other extra charges can accumulate quickly, and some reward cards offer appealing perks but require that you spend enough each year to “earn back” the fee. Make sure the value of the rewards and perks exceeds the cost of the card – if it doesn’t, consider a no-fee rewards card.

Choose the right card for your lifestyle

Pick a rewards card that aligns with your actual spending habits – like groceries, gas, travel, or dining – and focus your spending there.

“The value of a reward is best measured in the context of its associated costs. That includes annual fees, interest charges and even the temptation to spend beyond your budget,” Allan points out. “Rewards can be a valuable part of your financial toolkit, but they should never drive your spending decisions.”

Look Beyond the Points

While rewards get most of the attention, they’re not the only factor to consider. Other features can have a bigger impact on your financial health than a few extra points or miles, such as:

  • Low interest rates for occasional balances
  • Excellent customer service for dispute resolution and support
  • 0% intro APR balance transfer offers to help pay down debt
  • 0% intro APR on new purchases to help you budget for big expenses over time without paying interest
  • No hidden fees or confusing terms

The Perks of Non-Fee Cards

One misconception is that strong reward options only come from cards with annual fees. But consumers might be surprised by what today’s no‑annual‑fee cards can offer – such as competitive cash‑back rates, strong everyday spending categories and meaningful bonus structures, all without the cost of maintaining the card each year.

As Allan notes, “For many consumers, a premium card with a large annual fee may not be necessary to access meaningful rewards. A well‑designed, no‑fee card can deliver the right mix of rewards and predictability.”

Depending on the specific no-annual-fee card, benefits may include:

  • Cash back or points on everyday categories
  • Introductory APR periods
  • Zero‑liability fraud protection
  • Cell phone protection
  • Other rewards that accumulate without pressure to “earn back” an annual fee

Bottom Line: Rewards Should Work for You – Not the Other Way Around

Credit card rewards can be a great bonus, but they should never drive your spending decisions. The best credit card strategy is one that supports your financial goals, not one that distracts from them. Spend smart, manage your balance wisely, and let the rewards come to you – not the other way around.