Gone are the days when credit cards were only used for big purchases, to be paid off at one’s convenience or in EMIs. Nowadays, banks and credit card issuers offer several features to lure customers. When selecting a credit card, choose one that aligns with your spending habits and requirements. Credit cards provide reward points for both online and offline transactions, along with cashback and travel benefits. With banks introducing more products and features, competition among issuers has intensified, leading to better rewards and benefits for customers.
Here are five ways to make the most of your credit card rewards:
1. Choose cards that match your spending habits
Select cards that align with your lifestyle and spending patterns. With numerous issuers and cards available, assess your needs to see which card will earn you the most reward points based on your spending habits. For example, frequent diners should opt for cards offering cash vouchers and cash back on dining at restaurants. Likewise, frequent travelers can benefit from cards that offer extra points or cash back on travel expenses.
2. Know how the point system works for reward maximisation
You can only get the most of your credit cards only when you have better understanding of how the whole credit card point system works. Different cards have different ways of calculating reward points on your spendings. Some cards follow a simple rewards system, while others are bit complicated when it comes to their calculation of reward points and benefits offered. Keeping in view all of this, it becomes important to know where your credit card spending can give you the most value. It is always good for a customer if he picks cards with easy-to-understand reward point system, as it makes easier for you to to get the most benefits.
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3. Explore the reward catalogue
Take a look at the reward catalogue of potential credit cards to understand the available redemption options. Some cards offer gift vouchers on spending for everyday items, while others provide access to premium products. Select a card with a catalogue that suits your preferences and needs. Most banks provide access to their credit card reward catalogues on their websites, including exclusive co-brand catalogues with select partners and merchants.
4. Time your redemptions right
Keep an eye out for special deals and promotions from merchants partnered with your credit card issuers. Timing your reward point redemptions during promotions can earn you bonus rewards, discounted redemption rates and exclusive deals. Plan your redemptions carefully to maximize the benefits of these promotions.
5. Use your card for bill payments and pay in full every month
Use your credit card for bill payments and everyday purchases to maximize your reward points. However, avoid overspending solely for the sake of earning rewards. It’s crucial to pay off your entire balance each month to prevent accumulating debt. While carrying a revolving balance may earn you some reward points, it often results in unnecessary credit card interest payments.
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Summing up
In conclusion, by following these five tips, you can optimize your credit card rewards and make the most out of every point you earn. With careful planning and responsible usage, you’ll regularly enjoy exciting rewards such as cashback, discounts, vouchers and other offers.
