Responsible Credit Card Usage: My System and How I Maximize Rewards

Two credit cards on white background showing Chase and American Express illustrating how to maximize credit card rewards strategy

Responsible Credit Card Usage: My System and What It’s Taught Me

When it comes to credit cards, the rewards game can be exciting — but it can also be a trap. Carrots like free flights, fancy lounges, and big sign-up bonuses tempt people into chasing perks they’ll never use or, worse, carrying balances that wipe out any value.

I’ve built a system that works for me — one that fits my actual lifestyle, saves me money, and gives me the kind of travel experiences I care about. It’s not about copying my exact cards; it’s about learning the principles and applying them to your own life.

How I Got Started

What really pushed me into the credit card rewards game was travel. Back when I was going to Las Vegas every year, round-trip tickets were around $500. Meanwhile, the same flights were roughly 14,000 points. If valued at 1.5¢ per point (=$0.015) — often points are worth more — that’s only about $210! That would have been earned through my normal spending habits! That was my lightbulb moment — I could either pay cash and feel that sting every trip, or learn how to play the points game and stretch my money a lot further.

That Vegas experience is what led me to open my first premium card and start paying attention to categories and redemption value. From there, it evolved into the system I use today.

Principle 1: Always Pay in Full

This is non-negotiable. If you carry a balance, the interest rate will eat up any benefit. Honestly, I don’t even know my interest rates because I’ve never carried a balance. If I couldn’t pay my cards in full, I wouldn’t use them.

That’s the foundation of responsible usage: rewards are worthless if you’re paying interest. As I wrote in another post, making only the minimum payment can keep you stuck in debt for years. Managing the core of credit cards means paying on time and in full, every month — not just the minimum.

Principle 2: Match Cards to Your Real Spending

Rewards should reflect where your money already goes — not where you think you’ll force yourself to spend.

For me, that started with the Chase Sapphire Reserve (CSR). At the time, the annual fee was lower and the travel credit was more flexible. I love restaurants, so the 3x points on dining made it a clear win. Around then I was also spending $400+ a month on medications, so I paired the CSR with the Chase Freedom Unlimited (CFU) because it gave me 3x back at pharmacies. That wasn’t “extra spending” — it was making the most of what I had to spend anyway.

These days, my AmEx Gold is my main workhorse because of its 4x at restaurants and U.S. supermarkets. The CFU is still my flat 1.5x “everything else” card, and I keep the CSR around for travel protections, lounge access, and pooling points into the Chase ecosystem.

And when the Chase Freedom 5x category lines up with something I actually use — like Amazon, YouTube TV, or another streaming service — I’ll swap that card in. It’s easy bonus value without me changing my lifestyle.

When I was first figuring this out, I leaned heavily on resources like The Points Guy and NerdWallet. They break down multipliers, transfer partners, and perks in a way that helped me understand the landscape. But the key was applying that info to my own spending, not just chasing every shiny offer.

Principle 3: Diversify Your Rewards

Having all your points in one currency can limit your options. That’s why I like to spread between Chase Ultimate Rewards (UR) and American Express Membership Rewards (MR).

  • Chase points are great for flexible transfers and simple redemptions.
  • AmEx points let me transfer directly to Delta, my preferred airline.

That balance means I can book what I need when I need it. I even picked up a United card when I was planning a Southeast Asia trip — I was going to use Chase points to fly round-trip in first class. Thanks, Covid, for canceling that one. But the lesson stuck: flexibility matters.

As TPG often points out, your points are only as good as your redemption strategy. That advice has saved me more than once.

Principle 4: Use the Perks That Actually Fit Your Life

Premium cards pile on credits — but if you’re not using them, they’re worthless. I track mine in a spreadsheet so I know I’m actually getting value, not just paying fees for the illusion of perks.

I use:

  • DashPass + monthly credits (through CSR)
  • Uber and dining credits (AmEx Gold/Plat)
  • CLEAR and Global Entry credits (AmEx Plat + Delta Reserve — I’ve even used them to cover Katie’s membership)
  • Lounge food and drinks (CSR, Delta Reserve, AmEx Plat) when I travel 1–2x a year

What I don’t count are things like hotel portal credits. Why? Because I prefer booking direct with hotels and airlines. I’ve seen too many horror stories (and lived some myself) of rooms being canceled, reservations not syncing, or airlines pointing fingers when things go wrong. For me, the peace of mind of booking direct is worth more than a couple hundred dollars in credits. Sometimes those portals are a little pricier anyway, or the “fine hotels” options don’t exist where I’m actually traveling. Maybe I’ll use them later; I just don’t build my math around them.

Principle 5: Automate the Extras

Here’s the truth: I don’t pay much attention to random one-off perks or hidden promotions. But I still capture them. How? An app called MaxRewards.

It syncs my cards, tracks rotating categories, and automatically applies offers. I’ll get an email like, “Congrats, you just got 10x back at [restaurant/service],” and I wouldn’t have even noticed it otherwise. The app runs about $60/year, and I’ve easily saved more than that in random credits and point bonuses I would’ve missed.

That’s responsible usage too — letting automation do the heavy lifting so I don’t waste brainpower chasing pennies.

Principle 6: Remember Why the Perks Matter

For me, points aren’t just about luxury — they’re about practicality. I love business class, but I also book it because it doesn’t cost much more with points and it gives me extra leg room. Doctors recommend it for people with clotting disorders, and I’ve got a history of clotting. So what looks like indulgence is really responsible travel planning that keeps me healthier.

The System Works If You Work It

My setup today looks like this:

  • AmEx Gold for groceries and restaurants
  • Chase Freedom Unlimited for 1.5x on everything else
  • Chase Freedom when the 5x categories line up (Amazon, streaming, etc.)
  • CSR for travel, lounges, and as my Chase anchor
  • AmEx Platinum/Delta Reserve for big purchases (purchase protection + extended warranties) and Delta travel
  • United Explorer for airline perks and partner credits

That mix keeps me diversified, covers my real spend, and nets me more in credits than I pay in fees — without inflating the math.

My Numbers (Real Life, Not Marketing)

Screenshot of my credit card fees vs. credits tracking table

This is how I track my fees, credits, and net costs. You’ll notice I only count the perks I actually use — not the ones issuers market to make the card look more valuable.

A couple of things I don’t include in this math:

  • Every-4-year credits like Global Entry/TSA PreCheck. I’ve used them (for myself and even for others), but they’re not an annual benefit, so they don’t fit my “yearly math.”
  • Perks I’m not currently using — like hotel portal credits, airline incidental credits, or luxury travel programs that don’t line up with where or how I travel right now.

For me, this keeps the numbers grounded in my reality. I know I’m ahead without chasing credits I’ll never actually redeem.

Closing Thought

This system works for me. I track it in a spreadsheet and I’ve mostly memorized which card to use where. Some people put sticky labels on their cards, some use apps, but the point is the same: you need a system.

And you need to revisit it often. Annual fees are climbing, benefits are shifting, and post-2020 the travel/points game has changed a lot. Lounges are more crowded, cards are less “premium,” and flexibility is more important than ever.

So my advice is simple: build a system around your life, not around hype. Use the credits you’ll actually use, ignore the ones that don’t fit, and never carry a balance. Do that, and credit cards stop being a trap — and start being a tool.

Want to Get Started? Here Are My Referral Links

If you’ve been thinking about building your own system, here are some referral links to the cards I use. If you apply through these links and are approved, I can be rewarded — and you may also get a strong sign-up bonus. Win-win!

  • Chase Sapphire Reserve® / Preferred®
    Earn 125,000 bonus points with Sapphire Reserve® or 75,000 bonus points with Sapphire Preferred®. Apply here.
  • Chase Freedom Unlimited® / Freedom Flex®
    Earn cash back with the Chase Freedom Unlimited® or Chase Freedom Flex® credit card. Learn more and apply here.
  • American Express® Gold Card
    Here’s my Amex referral link: Use it and we could both earn rewards if you’re approved and get a Card. Offers vary, but you could earn up to 100,000 Membership Rewards® points. Check out the Amex Gold Card here.