Use These 7 Credit Card Tips to Stretch Your Budget

No sugar-coating it: Prices on goods and services remain high. The U.S. inflation rate was 2.8% for the 12-month period ending in February 2025, according to the Bureau of Labor Statistics' Consumer Price Index.

At that rate, every bit of value you can squeeze from your credit cards can be helpful.

As long as you're not accruing new debt or adding to existing balances on those cards, consider these seven tips to free up money for other goals.

1. Request a product change

Ask your issuer whether you can upgrade or downgrade your credit card when it no longer aligns with your spending habits. Downgrading to a different credit card is ideal to avoid an annual fee, while upgrading can provide more valuable perks or rewards.

One other advantage with this kind of move — known as a "product change" — is that you'll avoid a hard inquiry on your credit report, and thus also skip the temporary ding to your credit scores that such an inquiry can cause. (You're not opening a brand-new credit account, you're merely changing your existing one.)

One caution: For rewards credit cards, ask whether existing points, miles or cash back will be affected before making the switch.

2. Reallocate your credit limit

Some issuers allow you to reallocate a credit limit from one credit card to another within their product portfolio. Reasons you might explore this option include:

• Avoiding maxing out a frequently used credit card.

• Increasing your spending power in case of emergency.

• Earning more rewards.

• Preserving credit before an account closure.

• Qualifying for a new credit card with less risk to the issuer.

Cindy Greenstein, a points and miles consultant and creator of the blog The Points Mom, has tapped this option to increase her likelihood of approval for a new card with the same issuer, but she says it doesn't work with every bank.

“Call a special reallocation line and say to them that you only want the card and the bonus,” the New York resident says. “It usually makes them feel better to know that they don’t have to extend you more credit.”

3. Seek a retention bonus

When you’re on the fence about keeping a once-valuable credit card, ask the issuer whether it can offer any incentive to help you decide. As a loyal customer with a good track record, you might get a retention bonus that grants rewards in exchange for meeting a minimum spending requirement. Offers may vary depending on the issuer, and there’s no guarantee you’ll get one, but it’s worth trying.

In the past, Greenstein and her husband accepted two retention offers totaling about 70,000 points on credit cards with high annual fees. She estimates the offers added up to a minimum value of $700.

“You have to figure out if it’s worth it, based on what they offer, for you to keep it,” Greenstein says.

4. Meet bonus requirements with gift cards

When chasing a credit card bonus, don’t overspend to earn it. If your budgeted purchases aren’t enough to meet the bonus spending requirements within the designated time frame, consider using the credit card to buy gift cards you can redeem later.

You could buy a gift card to a grocery store, a restaurant delivery app or an often-frequented retailer. Just don’t overdo it because some issuers have rules against abuse.

5. Negotiate a lower APR

If your account is in good standing, try negotiating a lower annual percentage rate with your credit card issuer. Your creditworthiness factors into the interest rate, but an issuer may be willing to go lower.

Delia Fernandez — a certified financial planner who owns Fernandez Financial Advisory LLC, a California-based firm — suggests searching for competing offers at a different bank or credit union and presenting them to your credit card issuer to get a lower interest rate.

“You always want to negotiate from a position of strength, if you can,” Fernandez says. “So if you’re paying your bills on time and you’re doing well but every now and then you like to keep a balance on your credit card, it’s worth calling them up and finding out if they negotiate.”

6. Take advantage of cardholder discounts

Log in to your credit card account or contact your issuer to find out about perks and discounts. The type of offers available will vary by card and issuer, but some might include:

Credits or benefits

Some cards offer discounts on delivery service subscriptions, meal kits, streaming services or other options. Others might provide benefits like cell phone insurance if your phone is stolen or damaged. A benefit like this can help you save on a monthly protection payment, although you’ll have to pay the phone bill with the eligible credit card to qualify. Note that switching your payment method to a credit card might forfeit a carrier’s autopay discount, so do the math to determine whether it's worth it.

Balance transfer offers

Sometimes your existing card may provide balance transfer offers that allow you to move over debt from a different card or lender, but at a lower interest rate. There’s typically a fee between 3% and 5% charged on the amount transferred, so weigh that cost against your card’s current interest charges to figure out the best option.

Merchant-specific offers

Depending on the credit card or issuer, you might also have access to additional rewards or discounts with specific retailers. These offers typically require enrolling or "activating," but there's no penalty for not using them, and the savings can add up.

Travel perks

Some cards come with valuable travel-related benefits, such as free checked bags, airport lounge access and in-flight credits for eligible purchases, to name a few. Free checked bags alone on a round trip can partially or fully offset a credit card's annual fee.

7. Maximize rewards