More than half of people with rewards cards miss out on points or cash back, and it's a mistake that can add up quickly

Crystal Cox/Business Insider

The Chase Sapphire Preferred earns bonus rewards on dining.

• According to a survey from Bankrate, 55% of rewards card holders who pay their bills in full each month are missing out on rewards by choosing debit or cash.
• The survey found that rewards cardholders were most likely to leave points or cash back on the table by paying for groceries and restaurant purchases with cash or debit.
• Many credit cards offer bonus rewards for groceries and dining purchases. For example, the Blue Cash Preferred® Card from American Express earns 6% back at US supermarkets on up to $6,000 in purchases each year (then 1% back). And the Chase Sapphire Preferred Card earns 2 points per dollar on all your dining spending.
• Coupled with a credit card sign-up bonus, the rewards from your everyday spending can help you book travel like award flights or hotel stays.
• See Business Insider's list of the best rewards credit cards »

The cardinal rule of using credit cards responsibly is to treat them like debit cards, only spending what you can afford to pay off each month. Provided you're not spending beyond your means, credit cards can be powerful tools for building credit, protecting against fraud, and earning rewards - but a recent survey from Bankrate found that far too many cardholders are leaving value on the table.

According to the survey of 2,716 adults (of which 1,625 are rewards cardholders), 55% of rewards credit card holders who pay their bills in full each month are missing out on rewards. Instead of charging purchases like gas, groceries, dining, and travel to a card that offers points or cash back, they're using a debit card or cash.

Choosing cash or debit over your rewards card for a quick grocery run may not seem like a big deal, but the fact is that rewards from small purchases can add up quickly. Whether you want to earn cash back or travel rewards, choosing a card that offers some return on your spending is key.

Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which will far outweigh the value of any points or miles. It's important to practice financial discipline when using credit cards by paying your balances in full each month, making payments on time, and only spending what you can afford to pay back.

You can earn up to 6% cash back - or 4x points - at US supermarkets

According to the US Bureau of Labor Statistics from 2018, the average American spends $89 on groceries each month. Here's how much you could earn in rewards each year if you spent that much at US supermarkets with a cash-back or points-earning credit card:

• Blue Cash Preferred Card - $64 in cash back (earns 6% back at US supermarkets on up to $6,000 per year, then 1% back; $95 annual fee)
• American Express® Gold Card - 4,272 Amex Membership Rewards points (earns 4x points at US supermarkets on up to $25,000 each year, then 1 point per dollar; $250 annual fee)
• Citi® Double Cash Card - $21.36 in cash back (earns 2% cash back - 1% back when you buy, and another 1% back when you pay your bill; no annual fee)

Read more: The best credit cards for earning bonus rewards on groceries

You can earn up to 4% cash back - or 5x points - on dining

The other major spending category where rewards card holders are leaving value on the table is dining. The Chase Sapphire Preferred, Chase Sapphire Reserve, Citi Prestige® Card, and several others offer bonus rewards on dining.

According to the US Bureau of Labor Statistics from 2018, the average American spends $69 on dining each month. Using that figure, here's how much you could earn each year if you put that spending on a rewards card that earns bonus points or cash back for dining purchases:

• Capital One® Savor® Cash Rewards Credit Card - $33 in cash back (earns 4% back on dining; $95 annual fee that's waived the first year)
• Chase Sapphire Preferred - 1,656 Chase Ultimate Rewards points (earns 2x points on dining purchases; $95 annual fee)
• Chase Sapphire Reserve - 2,484 Chase Ultimate Rewards points (earns 3x points on dining purchases; $550 annual fee)
• Citi Prestige® Card - 4,140 Citi ThankYou points (earns 5x points at restaurants; $495 annual fee)
• Amex Gold card - 3,312 Amex Membership Rewards points (earns 4x points at restaurants worldwide; $250 annual fee)

Read more: The best credit cards for earning rewards on dining

The bottom line: If you already have a rewards card, you're leaving valuable cash back or points on the table if you're not using it to pay for purchases such as groceries and meals out.

If you don't have a rewards card already and you don't have credit card debt, it could be a smart move to find one that fits your lifestyle. Not only will you earn rewards on everyday spending, but the top cards also offer welcome bonuses that can get you started with 50,000 points or more.

See Business Insider's list of the best rewards credit cards »

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Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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