NerdWallet’s Best Credit Card Tips for January 2016

For many people, January means resolving to shed bad habits and develop good ones. That can apply to how you use and manage your credit cards, too.

Every month, the Nerds round up a new set of credit card tips to help you maximize rewards and minimize costs with each swipe. Here are our tips for January 2016.

Opt in to bonus categories

For those who carry a cash-back card with rotating bonus categories, January is more than just the start of the new year — it’s also the time to opt in to your first quarterly category.

Most credit cards that offer bonus cash back (usually 5%) on changing categories require you to opt in, or “activate,” each bonus category before you get the higher reward rate. Typically, the bonus applies to up to $1,500 in spending per quarter — so failing to opt in means missing out on up to $75 in free money. Opting in is also a good way to remind yourself what the current bonus category is so you can be sure to swipe the right card at the places where you’ll earn the most rewards.

To remind yourself of the quarterly category changes throughout the year, we recommend setting calendar alerts. Opting in only takes a moment, but it ensures you get most out of your 5% bonus card.