Trader logo

How To Make The Most Of Rewards Credit Cards

7 Tips to maximise your reward credit card benefits

By Kirti BhargavPublished 2 years ago 4 min read
Like

Getting a credit card is a crucial decision that you can ever make in your life. Once you are clear about the type of credit card you would like to go for, then the further process becomes easier. If you have happened to choose the credit cards with rewards then you have landed on the right page. In this article, we have covered a few things that you can follow to make the most out of your rewards credit card. Keep reading to kick start your research.

  1. Choose the right credit card: You can make the most out of the credit cards with rewards provided you have the right one. To choose the right credit card you need to first identify your needs and spending habits and then compare the credit cards and find the one which matches them. You can compare the credit cards on the basis of fees, hidden charges, benefits, and features.
  2. Take advantage of sign-up bonuses: Some credit cards provide the benefit of conditional welcome benefits that you can avail of. Welcome offers can be in the form of bonus reward points, gift vouchers, complimentary movie tickets, or membership to various platforms. Availing of these benefits helps you to maximise the benefits of your credit card.
  3. Earn reward points: Once you have received the credit card you need to use your credit card for those transactions only that allow you to earn reward points. This will allow you to maximize the benefits of your credit card. You don’t want to have a credit card that doesn’t allow you to earn the rewards and just increases your expenses. For example, on the Citi Rewards credit card, you get to earn 1 reward point on every Rs. 125 spent using the card, and on categories like apparel & departmental store allow you to earn 10 rewards points on every Rs. 125 spent on these categories.
  4. Redeem reward points: You don’t want to go all of your earned reward points waste. Right? So, to avoid this situation, you need to redeem your reward points during the validity period. You need to be familiar with your credit card’s reward redemption program so that you can take the advantage of it.
  5. Pay more than the minimum amount: While using a credit card it is important to pay the credit card dues timely. In those times when you have fewer funds then you can choose to pay the minimum due amount so that you can avoid the late payment charges. It is advisable to pay more than the due amount as it will take the burden off your shoulder while paying the rest of the amount.
  6. Maintain a low credit utilization ratio: To maximise the benefits of your rewards credit card you need to make sure that you don’t use your credit card more than the pre-determined credit limit on your credit card. The prescribed limit that you can use on your credit card is 30% - 40% and to maintain this you can set the threshold limit on your credit card. On reaching the limit you will get the notification about the same on your registered number so that you can stop using your credit card afterward.
  7. Adhere to the repayment cycle: You need to adhere to the repayment cycles so that you do not fall into a debt trap. Keep your credit card dues clear every month so that you do not have to pay the interest on them once the interest-free period is over. You can choose to register for the auto-debit services and relax as you won’t have to worry about the due dates and your credit card bills will be cleared on the selected date.

Last Word:

Rewards credit cards are no doubt can be the best option to go for. You get to earn reward points on your purchases and the earned reward points can be further redeemed for various purposes like booking flights/hotels, purchasing products, gifts, vouchers, etc. We hope that you will follow the above-mentioned tips as they will definitely help you in maximising the benefits of your rewards credit card. Using a credit card wisely is the only key to building a good standing account and your credibility.

Additional Reading - How To Use A Credit Card Wisely To Build Credit

personal finance
Like

About the Creator

Kirti Bhargav

Financial Content Writer at Cardinsider.com

Reader insights

Be the first to share your insights about this piece.

How does it work?

Add your insights

Comments

There are no comments for this story

Be the first to respond and start the conversation.

Sign in to comment

    Find us on social media

    Miscellaneous links

    • Explore
    • Contact
    • Privacy Policy
    • Terms of Use
    • Support

    © 2024 Creatd, Inc. All Rights Reserved.