Imagine you’re planning to buy a new laptop in Kolkata for ₹50,000. Instead of paying directly with cash, you decide to use your credit card. Not only do you get the laptop, but you also earn rewards like cash back or air miles. This simple act of using your credit card wisely can turn your ₹50,000 purchase into benefits like discounts or even free flights in the future.
In this article, we will guide you on how to maximize your credit card rewards. Whether you’re spending on a Personal Loan in Kolkata or using your credit card for everyday expenses, these methods should help you get the most out of your rewards.
1. Choose the Right Credit Card
First select the right credit card according to your needs so that you can get maximum strategy benefits. This is of course possible by taking into account the choice of credit card based on your expenditure patterns.
For Example:
If you spend ₹10,000 on a flight and your travel rewards card offers 2 miles for every ₹100 spent, you’d earn 200 miles (2 miles for every ₹100 spent on ₹10,000).
If you prefer cashback rewards, you might choose a card that gives 5% cashback on groceries and dining. For instance, if you buy ₹5,000 worth of groceries, you would earn ₹250 back in rewards.
2. Use Multiple Cards Wisely
You can have multiple cards for spending to earn maximum rewards on them. For instance, you might have a card that gives you cashback for groceries and another one that gives you rebates for travel.
Example:
If you spend ₹5,000 on groceries with a 5% cashback card, you’d earn ₹250 (5% of ₹5,000). If you then use a travel card for ₹2,000 spent on dining, you could earn ₹60 (3% of ₹2,000).
3. Charge All Purchases to Your Card
Use your credit card for even the smallest purchases like grocery shopping, fuel, or even paying the utility bills-an additional way to gain some rewards. Just don’t forget to pay off the balance every month to avoid interest charges.
4. Take Advantage of Sign-Up Bonuses
Lots of credit cards offer big sign-up bonuses when you reach some specified spending amounts. If you apply for the card during the time of big purchases, such as a Personal Loan in Kolkata for home renovation, you may meet this benchmark sooner.
5. Shop Through Issuer Portals and Partner Offers
Most credit card issuers have online shopping portals where one can earn further rewards when shopping through their links. Partner offers can be checked wherein some retailers give more points or cashback to purchases linked with those partner firms.
6. Optimize Redemption Strategies
When you decide to redeem rewards for value, take the option that allows you to redeem for the highest possible value. For example, it’s usually considered that using one’s points for travel bookings or gift cards can produce much more value than cash back.
7. Maintain Fiscal Discipline
The IMF has praised India for maintaining fiscal discipline even during the election year, highlighting that this is a crucial factor for long-term economic stability. Much like the approach taken by the country, to truly benefit from credit card rewards, you must avoid carrying a balance. Credit cards can have interest rates as high as 36% per year, which means carrying a balance can quickly undo any rewards you’ve earned.
Conclusion
Maximizing credit card spend rewards is about using the right strategies for making purchases in Kolkata or traveling to a destination. Choosing the right card, using multiple cards wisely, taking advantage of sign-up bonuses and promotions-all these fit in maximising each expenditure.
To gain the maximum benefit from credit card rewards, never carry a balance. For instance, with interest rates of up to 36% per annum on some cards, any balance would effectively yield negative returns, more than negating any rewards you would have earned.
