Want to maximize credit card rewards? Follow these tips
What's the story
Credit cards offer a variety of rewards in India, but they can only be maximized through effective strategies.
Knowing these strategies can prove extremely beneficial in ways such as getting cashback, travel points, etc.
Here are some strategies to boost your financial gains without overspending or mismanaging your credit.
Tip #1
Choose the right card for your needs
Selecting a credit card that matches your spending habits is essential.
If you travel often, go for a card that provides travel points or miles. For day-to-day purchases, a cashback card could be more useful.
Assess your monthly expenses and pick a card that provides rewards for those categories.
This way, every purchase you make goes toward earning maximum rewards without changing your spending habits.
Tip #2
Pay off balances monthly
To actually reap the benefits of credit card rewards, you must pay off your balances in full every month.
Carrying over balances incur interest charges that may cancel out the rewards you've earned.
Paying off the balance every month helps you avoid interest fees and keeps your credit score healthy.
This way, you not only maximize your reward potential but also practice responsible financial management.
Tip #3
Take advantage of bonus categories
Many credit cards provide bonus categories where you can earn additional points or cashback on certain purchases such as groceries or dining out.
Keep track of these rotating categories and plan your purchases accordingly to maximize your earnings during the promotional period.
Using these bonus opportunities gives you the chance to earn more rewards without spending anything further than necessary.
Tip #4
Monitor reward expiration dates
Rewards often come with expiration dates, so you'll need to keep an eye out to ensure you don't lose them unintentionally.
Check the status of accumulated points/cashback regularly and redeem them before they expire.
Some programs may even allow you to transfer points between accounts or convert them into gift cards if they're nearing expiration, so no earned reward goes unused.