10 ways to optimize credit card rewards and unlock extra benefits

The reward industry is growing in India and becoming a critical factor in choosing your credit cards as people are exploring ways to maximize their spending power. In today’s competitive credit card landscape, companies are providing exciting benefits to customers to accumulate more rewards and utilize them in their next purchase.

Rewards can offset various costs, provide substantial savings on travel, and offer cash back on everyday purchases, ultimately enhancing your purchasing power. By strategically earning and redeeming rewards, you can stretch your budget further and achieve your financial goals more efficiently.

Appended below are some of the tips to help you multiply your reward points and unlock valuable benefits to prepare for your next purchase:

1. Strategically Time Credit Card Applications

Plan your applications around festivals or sale seasons when you anticipate higher spending. This approach helps meet minimum spending requirements for sign-up bonuses. For example, apply before Diwali or during end-of-season sales.

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2. Maximize Category Bonuses

Analyze your spending patterns and select cards that offer higher rewards in your most frequent expense categories. Use a card that offers extra points on groceries for your grocery store trips and another that provides bonus points on dining out. Rotate cards based on their strengths to maximize returns.

3. Utilize Partner Merchant Programs

Many credit cards have partnerships with specific merchants offering additional cashback or accelerated rewards. Make it a habit to check your card’s partner list before making purchases. This can significantly boost your rewards on everyday transactions.

4. Pay Utility Bills with Your Credit Card

Set up your recurring bills like electricity, mobile recharges, and DTH services to be paid with your rewards credit card. Ensure there are no additional charges for using a credit card.

5. Take Advantage of Festive Season Offers

Stay alert for special promotions during festivals. Many card issuers offer enhanced rewards or cashback during these periods. There are some rewards aggregator platforms where you can seamlessly redeem your reward points and earn more rewards after every purchase on the platform. Set up SMS alerts or regularly check your card issuer’s website or app for these opportunities.

6. Implement a Multi-Card Strategy

Use multiple credit cards to optimize rewards across different spending categories. For example, use one card for fuel purchases, another for online shopping, and a third for dining. Keep track of which card to use for each category.

7. Add Supplementary Cards Strategically

Some credit cards offer benefits for adding supplementary cards. If you trust a family member, adding them as a supplementary cardholder can help accumulate rewards faster. Their spending will contribute to your rewards balance.

8. Optimize Reward Point Redemptions

Research the best ways to redeem your points. Converting points to air miles or using them for hotel bookings often provides better value than cashback. Compare different redemption options before deciding. You can use platforms that aggregate rewards from various programs, providing a seamless and efficient way to enhance the value of your points. These platforms allow you to pay directly with your reward points at a wide array of merchants, ensuring you maximize the benefits from your accumulated rewards. You can earn more rewards while utilizing the previously earned rewards for discounts.

9. Shop via Credit Card Portals

Many credit card issuers offer online shopping portals that provide incremental rewards for purchases made through their links. Before making an online purchase, check these portals to earn additional points or cash back, thereby enhancing your total reward yield.

10. Maintain Fiscal Discipline

To fully capitalize on rewards programs, avoid carrying a balance and incurring interest charges. Paying off your credit card balance in full each month ensures the net value of your rewards remains intact, maintaining healthy credit utilization and optimizing your financial position.

Remember, while accumulating rewards is beneficial, it should never come at the cost of financial health. Always prioritize paying your balance in full and on time to avoid interest charges and late fees, which can quickly negate the value of any rewards earned.

By implementing these strategies, you can maximize the benefits of your credit cards. Whether you’re saving for a vacation, looking to offset everyday expenses, or simply enjoying the perks of cashback, smart credit card usage can provide significant value over time.

(By Amit Koshal, Co-founder & CEO, Twid)

Disclaimer: Views expressed are personal and do not reflect the official position or policy of FinancialExpress.com. Reproducing this content without permission is prohibited.