Use the right card, and pay it in full
By Amine, founder of Lirandel. Last fact-checked October 22, 2026. General information, not financial advice.
Most people already spend enough to earn something back on it. Paying by debit card earns nothing; the same purchases on a rewards credit card paid off in full each month earn 1–2% or more. But the order matters: first pay in full, then pick the right card.
Pay in full first
Interest is far bigger than rewards. Card accounts that pay interest have been charged an average rate above 21% in recent Federal Reserve data. On a $2,000 balance, about 21% a year is roughly $420 in interest. Two percent back on $1,000 of spending a month is $240. A carried balance wipes out the rewards and more. In 2022, consumers paid about $105 billion in card interest and $14.5 billion in late fees, according to the CFPB.
- Set autopay to the full statement balance, not the minimum.
- If you already carry a balance, a 0% intro APR card can stop the interest while you pay it down, but only if you stop adding to it, and you should check the rate that applies after the intro period.
Then use the right card for each kind of spending
Cards earn different rates in different categories: one may pay more at restaurants and supermarkets, another a flat rate everywhere. If you have two or more cards, using each where it earns most adds up without spending a dollar more. Check where a card is accepted, too: some stores take only certain networks.
Lirandel works this out from your own spending: its “Which card to use” list shows, for each kind of spending, which of your cards earns most, and what it's worth a year. If you carry a balance, it tells you to pay that first instead.
Foreign purchases
Some cards charge a fee on purchases abroad or in other currencies: Wells Fargo's Active Cash and Reflect charge 3%, for example. Before a trip, check your card's terms and use one without the fee. See the cards Lirandel compares on the Rates page.