Personal Finance

I earned $2,000 worth of credit card rewards while raising my credit score from 590 to 715

Marc Guberti

Published: February 24, 2025 10:42 pm

You can earn a lot of money from credit cards if you use them correctly and pay off your balance at the end of each month. One Redditor posted in the Personal Finance subreddit about earning $2,000 worth of credit card rewards in a single year. The Redditor broke down how much they received from each credit card. 

While it’s impressive to earn $2,000 from credit cards in one year, the story is also inspiring. The Redditor was previously in debt and had a 590 credit score. In a single year, that debt is gone, and the Redditor now has a 715 credit score. 

If you want to discover how to use credit card rewards to assist with your long-term financial goals, you can benefit from the Redditor’s journey.

Having Multiple Credit Cards Leads to the Best Rewards

Even if you already have a good credit card that you use for every purchase, it’s worth opening multiple credit cards to get better rewards. Granted, you should only open new credit cards if you don’t plan to apply for a mortgage anytime soon. A new credit card application will trigger a hard credit check that will temporarily hurt your credit score. However, a new credit card is worth it in the long run if you use it responsibly.

The Redditor has 7 credit cards and made sure to qualify for the welcome bonus. Some credit cards offer $300 sign-up bonuses if you make enough purchases within a 3-6 month window. The Redditor opened a few of these cards and plans to close them by the end of the year.

You Don’t Have to Spend More Money to Maximize Your Rewards

Some commenters were worried that the Redditor was spending more money to earn more credit card rewards. While the Redditor put those worries to rest by explaining that a lot of the cash came from sign-on bonuses, you can maximize your credit card rewards with a good credit card mix.

For instance, some cashback credit cards have elevated cashback for specific categories. If one credit card offers 3% cashback on entertainment purchases, you would use that card for entertainment purchases. Some credit cards also offer 3% cashback on dining, and you can use that card for your dining expenses. 

You can then use a credit card that offers unlimited 2% cashback on all purchases for any spending categories where you can’t access elevated cashback. 

You can maximize your rewards by looking at travel rewards credit cards that offer great perks. While you can get cashback and welcome bonuses, additional perks on a credit card can result in additional income and savings. You might get free vacations and multiple nights at hotels if you accumulate enough points. While you have to accumulate points for some opportunities, you can save money on some travel expenses right away just by having the right credit card.

A Higher Credit Score Can Change Your Life

The Redditor mentions how using multiple credit cards and staying sharp with their finances resulted in their credit score going from 590 to 715 in one year. That’s a life-changing result, as the Redditor can now qualify for a mortgage and receive competitive rates. 

The payments you make on a credit card get reported to the major credit bureaus — Experian, Equifax, and Trans Union. Since on-time payments make up 35% of your credit score, you can end up with sizable credit score growth just by staying on top of your bills.

However, you’ll also benefit from a low credit utilization ratio. Credit utilization makes up 30% of your credit score, and itmeasures how much of your credit limit you have borrowed against. A cardholder with a $2,000 debt on a $10,000 credit limit has a 20% credit utilization ratio. A credit utilization ratio below 10% is optimal for building credit, but keeping this metric under 30% is also useful for boosting your credit score. 

Having multiple credit cards increases your available credit, which will put you at an advantage with your credit utilization ratio. Opening a new credit card can create new opportunities for your finances that allow you to earn and save a lot of money. Just make sure you pay off your balance at the end of each month and live below your means.