5 Surprising Ways Rewards Credit Cards Are Improving My Personal Finances

Sometimes people are concerned about getting started with rewards credit cards because they don't want to overspend or hurt their credit. It's true that if you're not careful and organized with paying off credit card balances, you might owe interest or spend more than you intended.

But if you're the kind of person who enjoys managing your budget and using online banking apps, rewards credit cards can be a fun way to improve your life. Rewards credit cards make me feel like I'm making money from my everyday spending.

I just recently got started with the rewards credit cards hobby, but here are a few ways that these credit cards are already making a positive difference in my personal finances.

1. I'm more aware of my monthly spending

Before I signed up for rewards credit cards, I was concerned that the cards might make me lose track of my spending. "What if I pay for too many things with one card, and forget to pay it off?" The truth is the exact opposite. Using rewards credit cards has let me turn my banking app into a home base for my everyday spending and monthly budgeting. I know exactly where my money is going, and I'm getting reward points along the way.

2. I feel more in control of my budget

Critics of rewards credit cards warn that these cards give people an incentive to overspend. I've found my experience to be the exact opposite: Rewards credit cards are giving me extra motivation to pay attention to my monthly budget and know where my money is going.

My mobile banking app has built-in budgeting features so I can see how I spend. And the app makes it easy to pay credit card bills on time, or even early -- paying off credit cards before the statement date can help keep your credit utilization ratio low.

Reward credit cards aren't making me spend too much; they're giving me better visibility for how I spend, and when. Now I have a better sense of the ups and downs of my monthly cash flow.

3. I'm more likely to seek out good deals on everyday shopping

Here's a fun perk of rewards credit cards that I didn't know about: They often have special offers. These targeted offers appear within my Chase banking app, and they're easy to activate. Then I use my Chase card to buy from each special offer brand or merchant, and get 10% discounts (or more), or get cash back as a statement credit.

I recently cashed in a $12 discount on some new clothes that I needed from StitchFix, and I'm also seeing tempting offers like 10% cash back on Lindt chocolates or up to 10% cash back on Southwest Airlines purchases.

4. I'm excited about paying big bills

Paying the bills every month is no longer a mundane chore; it's an opportunity to maximize credit card rewards! I am using my rewards credit cards to pay as many bills as possible, even my utilities bill and my health insurance premium. I'm not afraid of paying my taxes or getting a price hike on my auto insurance -- more points for me!

Want to see how this works? Let's say a credit card gives you a welcome offer of 1.5% of additional cash back on the first $20,000 you spend on the card in the first year in addition to 1.5% cash back on most everyday purchases. Let's say you run all your monthly bills through this card, spending $2,000 per month, for 10 months. You'll spend $20,000 and get 3% cash back, or $600. And you may be able to spend that cash back in your card's shopping or travel portal, making it worth even more.

5. Shopping is more fun

My new credit card has some fun perks like a free DashPass membership, which has already saved my family money on DoorDash delivery fees. And another card in my wallet has different bonus categories each quarter that give an extra 5% cash back on purchases from that quarter's category, like groceries or restaurant meals.

Now with everything I buy, I'm thinking about it in terms of "how many rewards points will I get, and how can I convert them into travel rewards?" Instead of just paying bills and buying groceries, credit card rewards turn everyday life into a fun game behind the scenes of the financial system. I'm getting a little something extra out of my life as a shopper, and it feels good!

Bottom line

If you are trying to improve your credit score or struggle from excessive spending, rewards credit cards might not be right for you. Don't put yourself at risk of damaging your credit or racking up credit card debt. But if you have a strong credit score and are curious about rewards credit cards, applying for one of the the best credit cards could be a good place to start. Rewards credit cards can make your everyday life feel a bit richer.