No sugar poured: products and services remain high. According to the Bureau of Labor Statistics’ Consumer Price Index, the US inflation rate for the 12 months ended in February 2025 was 2.8%.
At that rate, all the values you can narrow down from your credit card will help.
Unless you’re earning new debt or adding it to your existing balances on these cards, consider these 7 tips to free up money for other goals.
1. Request a product change
Ask the issuer if you can upgrade or downgrade your credit card when it no longer matches your spending habits. Downgrading to another credit card is ideal to avoid annual fees. On the other hand, upgrades can offer more valuable perks and rewards.
This kind of movement (another advantage known as “product change”) is to avoid rigorous investigations of credit reports and skip temporary dings to credit scores that such inquiries could cause. (You are not opening a brand new credit account. You just need to change your existing credit account.)
One note: For rewarded credit cards, you will be asked if your existing points, miles, or cashback will be affected before switching.
2.Redistribute credit limits
Some issuers can reassign credit limits from credit cards in their product portfolio to another credit card. Here are some reasons to consider this option:
Avoid maximizing frequently used credit cards. Increases power in emergencies. Earn more rewards. Save your credits before your account is closed. A new credit card qualification that provides less risk to the issuer.
Cindy Greenstein, a Points and Miles consultant and creator of the blog The Points Mom, tapped on this option to increase the likelihood of approval for new cards with the same issuer, but she says it doesn’t work on all banks.
“Come on a special real location line and tell them you only need a card and a bonus,” says a New York resident. “Usually they feel better knowing they don’t need to extend their trust more to you.”
3. Find a Hold Bonus
When you’re on the fence about holding a once-valuable credit card, ask the issuer if they can provide incentives to help with their decisions. As a loyal client with a good track record, you may receive a retention bonus that grants you a reward in exchange for meeting the minimum spending requirements. Offers may vary by issuer and there is no guarantee that you will get it, but it is worth a try.
In the past, Greenstein and her husband have accepted two retention offers, totaling around 70,000 points on credit cards with a higher annual fee. She estimates offers up to $700.
“To keep it up, you need to know if it’s worth it based on what they offer,” says Greenstein.
4. Meet your bonus requirements with gift cards
When chasing credit card bonuses, don’t use too much to earn them. If a budgeted purchase is not sufficient to meet your bonus spending requirements within the specified time frame, consider using your credit card to purchase gift cards that you can redeem later.
You can purchase gift cards from grocery stores, restaurant delivery apps, or often frequent retailers. Some publishers have rules against abuse, so don’t overdo it.
5. Negotiate the lower April
If your account is in good condition, try negotiating a lower annual rate with your credit card issuer. Your creditworthiness is a factor in interest rates, but the issuer will be happy to decline.
Delia Fernandez – A certified financial planner who owns Fernandez Financial Advisory LLC, a California-based company, suggests searching for competing offers at another bank or credit union and presenting them to credit card issuers to get a lower interest rate.
“If possible, I would always want to negotiate from a position of strength,” Fernandez said. “So if you’re paying your bills on time and you’re doing well, but sometimes you want to balance your credit card, it’s worth finding out if they’ll negotiate.”
6. Take advantage of card holder discounts
Log in to your credit card account or contact the issuer to find out more about benefits and discounts. The types of offers available vary by card and issuer, but some include:
Credit or Benefits
Some cards offer discounts on delivery services subscriptions, meal kits, streaming services, or other options. Others may offer benefits like mobile phone insurance if your phone is stolen or damaged. These benefits help you save on monthly protected payments, but you will need to pay your phone bill with a qualified credit card to qualify. Be aware that switching your payment method to a credit card could potentially confiscate your carrier’s Autopay discount, so be aware that you determine whether math is worth it.
Balance Transfer Offer
Existing cards may offer balanced transfer offers that allow you to move your debt at a lower interest rate over debt from another card or lender. Typically, you will be charged between 3% and 5% on the amount transferred, so you will weigh the costs against the current interest on your card to understand the best option.
Merchant-specific offers
Depending on your credit card or issuer, you may also have access to additional rewards and discounts with certain retailers. These offers typically require registration or “activation”, but there is no penalty for not using them. The savings can be summed.
Travel Benefits
Some cards offer valuable travel-related perks, such as a free check bag, airport lounge access, and in-flight credits for eligible purchases. A free round-trip check bag alone can partially or completely offset your credit card annual fee.
7. Maximize your rewards
Consider having multiple reward credit cards to maximize your chances of earning rewards. For example, you can pair with cards that earn 5% cashback in a given category and cards that earn 2% cashback on all purchases. As long as you can track your spending on multiple cards to avoid debt, the dynamic duo of reward credit cards can provide a healthy incentive.
Melissa Lambalena writes for Nald Wallet. Email: mlambarena@nerdwallet.com. Twitter: @lissalambarena.
In this article, we will use these seven credit card tips to increase the budget that originally appeared in Nerdwallet.
Original issue: April 1, 2025, 2:25pm EDT
