New year, new approach: How to choose your best credit card strategy for 2025

January is a time for making plans for the next 12 months. And while health and wellness usually get all the attention this time of year, you're almost certainly also taking a closer look at your finances. You may be setting up a budget and planning to invest or open a new savings account.

But as you make these financial plans, don't forget to take some time to think about your 2025 credit card strategy as well.

Not sure where to start? Here's what we recommend to start your year on the right foot.

Identify your goals

As with most things, identifying a goal helps determine the best credit card strategy for you. If you haven't already, consider your priorities for 2025. Some questions to ask include:

• Are you taking a big trip you want to pay for with a certain type of points or miles?
• Are you looking ahead at a major expense this year and want a card with an introductory 0% annual percentage rate offer?
• Is the cost of living still pinching your wallet, and you want to focus on earning cash-back rewards?
• Do you want to improve your credit score?

Identifying your goals will guide you as you make decisions about which of your cards you want to use more often, which you want to shelve or downgrade, and which new ones you want to apply for.

Rearrange your wallet

With your 2025 goals in mind, take inventory of your cards and adjust what's in your wallet (physical and digital) accordingly.

For example, I spent the past few months working to meet minimum spending requirements to earn the welcome bonuses on some new cards, so I used those cards for all my purchases. Now, however, I'm between new cards, so I'm focusing on maximizing the bonus categories for the cards I already have.

If you're in a similar situation, take a moment to look at your current cards. If any of them have rotating categories, like the Chase Freedom Flex® (see rates and fees), note what the Q1 categories are and check that you've activated them. Also, determine which, if any, of your cards earn bonus points for categories like dining, travel and grocery spending. You'll also want to figure out which of your cards has the best earning structure for everyday purchases.

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When you've determined which cards fall into these categories, you can make a plan for which card to use for different purchases. You might end up designating your American Express® Gold Card for dining and U.S. supermarket purchases, your Chase Sapphire Preferred® Card (see rates and fees) for travel purchases and your Capital One Venture Rewards Credit Card for all other purchases.

When making your plan, remember that some rewards will be more beneficial than others for your specific goals. If you want to focus on earning Chase Ultimate Rewards points, for example, you might choose to instead use your Sapphire Preferred card for dining. It earns 3 points per dollar on these purchases — slightly fewer than the Gold's 4 points per dollar (on up to $50,000 per calendar year, then 1 point per dollar) — but you'll earn points that more directly support your goals.

Keep, banish, downgrade

As you consider your card collection in light of your 2025 goals, consider whether it's worth paying the annual fee for each of your cards when they are due this year or whether you want to downgrade any of them.

Additionally, suppose you notice any major benefits overlap between your cards, such as multiple cards that earn bonus points for streaming. In that case, you may banish one or more to the sock drawer and focus on using just one this year to streamline your earnings.

Plan your next card

Finally, pay attention to gaps in your current card strategy to help you choose your next credit card. This could be as simple as noting the type of miles you're running low on and deciding you want your next card to be one that earns those miles. It could also be a decision to wait a bit to open any more cards if your credit score has taken a hit from too many inquiries recently.

Regardless of your goals, it's helpful to know what type of cards you want to get this year. Then, when a valuable bonus offer comes along, you know if it's worth it for you to jump on or if you're better off going after something else.

Bottom line

As you make your 2025 plans and resolutions, remember to take some time to adjust your credit card strategy for the year. No matter what your goals are this year, the right cards can make it even easier to achieve them.

Further reading:

• Credit cards 101
• How to use your points and miles better
• How credit cards can help you stick to your New Year's resolutions
• How to build your credit card portfolio
• How to create a credit card strategy without annual fees