These days, credit card issuers have bundled their products with several features to lure customers. However, you should not fall for features that you are not going to use. It is important that when you select a credit card, it aligns with your spending habits and needs. Credit cards provide reward points for both online and offline transactions, along with cashback and travel benefits. With banks constantly launching new products and adding new features, competition among credit card players has intensified, which ultimately has led to better rewards and benefits for customers.
Here are five ways to make the most of your credit card rewards:
Choose cards that match your spending habits
Always go for cards that align with your lifestyle and spending patterns. With dozens of card companies offering thousands of products, you should assess your need and see which card will earn you optimum 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 travellers can take cards that offer extra points or cash back on travel expenses.
Also Read: When is the right time to increase your credit card limit?
Know how the point system works for reward maximisation
You can get the most out of your credit cards only when you have a better understanding of how the whole credit card point system works. Different cards have different ways of calculating reward points. Some follow a simple rewards system, while others are a 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 an easy-to-understand reward point system, as it makes it easier for you to get the most benefits.
Explore the reward catalogue
Take a look at the reward catalogue of various 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.
Time your redemptions right
Keep a watch on special deals and promotions by 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.
Use your card for bill payments and pay in full every month
Make it a habit to use your credit card for bill payments and everyday purchases to maximize your reward points. But be careful also and avoid overspending solely for the sake of earning rewards. You should 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 credit card interest payments.
Summing up
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 will regularly enjoy exciting rewards such as cashback, discounts, vouchers and other offers.